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Question - Prat Corp. started the Year 2 accounting period with $37,000 of assets (all cash), $15,500 of liabilities, and $12,000 of common stock. During the year, the Retained Earnings account increased by $14,550. The bookkeeper reported that Prat paid cash expenses of $29,500 and paid a $2,700 cash dividend to the stockholders, but she could not find a record of the amount of cash that Prat received for performing services. Prat also paid $10,000 cash to reduce the liability owed to the bank, and the business acquired $8,500 of additional cash from the issue of common stock.
Required - Find the amount of cash the prat received for performing services?
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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