-In the Above Figure, If the Economy Is Initially at Point

question 85

Multiple Choice

-In the above figure, if the economy is initially at point D and then the Reserve Bank lowers the cash rate,

• A)the supply of loanable funds decreases, the real interest rate falls, and the AD curve shifts rightward.
• B)other short- term interest rates fall, net exports increase, and the AD curve shifts rightward.
• C)the demand for loanable funds and supply of loanable funds both increase by the same amount so that the AD curve shifts rightward.
• D)the exchange rate rises, investment increases, and the SAS curve shifts rightward.

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Definitions:

Joint Production Process

A joint production process is a manufacturing activity that simultaneously produces multiple products from a common input or set of inputs.

Split-off Point

The stage in a production process where joint products are physically separated and can be further processed or sold.

Processed Further

Processed Further describes materials or products that undergo additional manufacturing or development stages to add value before final sale.

Manufacturing Cycle Efficiency

A measure of the efficiency of the production process, calculated as the ratio of value-added time to the total cycle time.