Everything Else Held Constant,if Interest Rates Are Expected to Fall

question 129

Multiple Choice

Everything else held constant,if interest rates are expected to fall in the future,the demand for long-term bonds today ________ and the demand curve shifts to the ________.

• A)rises;right
• B)rises;left
• C)falls;right
• D)falls;left

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Definitions:

Weighted-Average Method

An inventory costing method that averages the cost of goods available for sale and assigns the average cost to ending inventory and cost of goods sold.

Step-Down Method

An indirect method of cost allocation that allocates costs of service departments to producing departments in a sequential manner.

Service Department Cost Allocation

The process of assigning indirect costs from service departments (like maintenance or HR) to producing departments based on their usage of services.

Step-Down Method

The step-down method is an accounting technique used to allocate service department costs to production departments, often in a sequential manner that recognizes service departments' interdependencies.