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Question - The balances of select accounts of McMurray, Inc. as of December 31, 2018 are given below:
Notes Payable-short - term $1,100
Salaries Payable 4,000
Notes Payable-long - term 20,000
Accounts Payable 3,100
Unearned Revenue 3,000
Interest Payable 2,400
The Unearned Revenue is the amount of cash received for services to be rendered in January 2019. Interest Payable will be paid on February 5, 2019. What are the total long-term liabilities shown on the balance sheet at December 31, 2018?
A. $4,000
B. $6,100
C. $1,100
D. $20,000
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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