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Hanson Technology is a computer manufacturer. For years, Hanson has relied on the JIT inventory method. However, due to numerous recent stockouts by Hanson's suppliers, Hanson's management has decided to transition to the traditional inventory method. How will Hanson's inventory levels change as a result of this switch?
A: Hanson's levels of finished goods, work in process, and raw materials will all decrease. B :Hanson's levels of finished goods, work in process, and raw materials will all increase. C : Hanson's levels of finished goods and raw materials will all decrease but work in process will remain the same. D : Hanson's level of finished goods will increase but raw materials and work in process will remain the same.
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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