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Question - Cerrone Inc. has provided the following data for the month of July. The balance in the Finished Goods inventory account at the beginning of the month was $51,800 and at the end of the month was $44,700. The cost of goods manufactured for the month was $246,000. The actual manufacturing overhead cost incurred was $127,400 and the manufacturing overhead cost applied to Work in Process was $121,000. The adjusted cost of goods sold that would appear on the income statement for July is:
$238,900
$246,700
$259,500
$253,100
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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