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Question 1: On June 15,2020, Stilley Corporation accepted delivery of merchandise which it purchased on account. As of June 30, Stilley had not recorded the transaction or included the merchandise in its inventory. Stilley uses the periodic inventory system. The effect of the error on Stilley's balance sheet on June 30,2020 would be Option 1: Assets and stockholder's equity were overstated but liabilities were not affected
Option 2: Stockholders' equity was the only item affected by the omission
Option 3: Assets, liabilities, and stockholders' equity were understated
Option 4: None of these
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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