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Question - Jessica's aunt died and left her a house and some money to her and 2 of her siblings. Jessica has four siblings total. Although 2 of her siblings were not listed as beneficiaries, they have agreed to split all of the assets among all 5 people. The house was valued at $229,000, which was sold for that exact amount and there are bank accounts worth $60,000. The siblings have already distributed the house money. They have not yet touched the money from the bank accounts.
Jessica wants to know how this inheritance might affect her income taxes.
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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