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Question 1: Using the information below in the computation of cost of goods sold, what would be the appropriate amount of Purchases?
Purchase returns $1,200
Inventory, December 31 $2,500
Cost of goods sold $10,500
Purchases ?
Inventory, January 12, $500
Freight-in $1,500
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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