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Question - The production budget shows that expected unit sales are 86,000 for May and 87,000 for June. The company desires to have units on hand at the end of the month equal to 10% of next month's sales. The ending inventory for April (and therefore the beginning inventory for May) was consistent with this policy. How many units should the company produce during May?
86,100
94,600
85,900
94,700
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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