Which of the Following Statements Is the MOST Accurate

question 24

Multiple Choice

Which of the following statements is the MOST accurate?

• A) In the long run, national price levels play a minor role in determining both interest rates and the relative prices at which countries' products are traded.
• B) In the long run, national price levels play a key role only in determining interest rates.
• C) In the long run, national price levels play a key role only in determining the relative prices at which countries' products are traded.
• D) In the long run, national price levels play a key role in determining both interest rates and the relative prices at which countries' products are traded.
• E) In the long run, national price levels play no role in determining interest rates and the relative prices at which countries' products are traded.

---

Definitions:

Direct Labor-Hours

The total hours worked directly on a product by employees.

Plantwide Predetermined Rate

A single overhead absorption rate used throughout an entire factory or plant for allocating overhead costs to products.

Manufacturing Overhead

All indirect costs related to the manufacturing process, including costs of indirect materials, indirect labor, and other expenses that are not directly tied to the production of goods.

Machine-Hours

A measurement unit representing the number of hours a machine is operational and working on production tasks.