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Question - APEC Company consigned 2,000 units of digital camera, costing P800 each to ASEAN Company to be sold at P1,500 per unit. The agreement calls for 15% commission on units sold and any expenses paid by the consignee is reimbursable by the consignor. APEC paid P40,000 freight and insurance of P20,000 for the shipment. At the end of the month, ASEAN remitted the amount due to the consignor after deducting commission of P360,000 and advertising costs of P50,000. Record shows that 250 units were left to the consignee and some units were returned to the consignor. APEC paid the cost of shipment of the returned units amounting to P20,000.
Required - What is the proper amount of net income reported by the consignor?
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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