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Question - Cake is a product of the Chester company which is primarily sold in the Americas Budget segment. Chester starts to create their sales forecast by assuming all policies (R&D, Marketing, and Production) for all competitors are equal this year over last. For this question assume that all 1,232,478 units of Cake in the Americas region are sold in the Americas Budget segment. If the competitive environment remains unchanged what will be the Cake's demand next year?
a. 1,294,101
b. 1,879,528
c. 2,588,203
d. 1,232,478
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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