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Question: (Identification of funds used by a large city) This information is extracted from or based on the notes to the financial statements issued by New York City. For each item described, identify the fund used by New York City.
1. "This is the general operating fund of the City. Substantially all tax revenues, Federal and State Aid (except aid for capital projects) and other operating revenues are accounted for in [this fund]."
2. "This fund accounts for resources used to construct or acquire fixed assets and make capital improvements."
3. "This fund, required by State legislation into which payments of real estate taxes and other revenues are deposited in advance of debt service payment dates. Debt service on all City bonds is paid from this fund."
4. These funds account for assets held on behalf of the City's employees to pay pension benefits.
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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