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Problem - Juan dela Cruz opened his pet shop business called Petness First Petshop. He opened a bank account for his business and deposit 500,000. The business earned 50,000 but he had doubts with the recorded expenses of 60,000. He is not sure if he should include the following items as expenses:
Salary expenses - 20,000
Rent expenses - 10,000
Utility expenses (at home) - 15,000
Utility expenses (at the store) - 10,000
Insurance expenses - 5,000
Withdrawals - 10,000
Required -
-Which of the following expenses cited above do you think should not be included in the business financial report of Mr. dela Cruz?
-What is your reason for not including the said expenses?
Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest. How much control does the Fed have over this longer real rate?
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