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Question - Art-Frames Co. manufactures standard sized frames, and expects the following number of frames to be sold during the last three months of 20X5:
October: 20,000
November: 25,000
December: 40,000
Art-Frame tries to have inventory on hand at the end of each month to equal 20% of the following months sales. How many frames should Art-Frame produce during November?
33,000
28,000
26,000
23,000
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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