If There Is an Increase in Government Spending That

question 50

Multiple Choice

If there is an increase in government spending that is financed by issuing bonds,then

• A)interest rates should rise which increases private investment.
• B)interest rates will remain the same unless taxes are reduced as well.
• C)interest rates should fall which increases private investment.
• D)interest rates should rise which decreases private investment.
• E)None of the above.

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Definitions:

Factory Overhead Rate

A rate used to assign or allocate factory overhead costs to individual units of production, usually based on a standard measure such as labor hours or machine hours.

Direct Labor Cost

The total of all wages paid to employees who are directly involved in the production of goods or services.

Internal Stakeholders

Individuals or groups within an organization who are directly impacted by its actions, decisions, and outcomes, such as employees, managers, and owners.

External Stakeholders

Individuals or groups outside of a company who are affected by or have an interest in its operations, such as customers, suppliers, and the community.