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Under Elliott's will, Lucia inherits property. Lucia dies 18 months later. Assume that the estate tax attributable to the inclusion of the property in Elliott's gross estate was $28,000 and that the estate tax attributable to the inclusion of the property in Lucia's gross estate is $19,000.
Click to access Exhibit 18.3, Credit for Tax on Prior Transfers.
a. Under these circumstances, Lucia's estate claims a credit against the estate tax of $_________.
b. What would the answer be if Lucia died five years after inheriting the property?
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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