The Interest Rate Falls If

question 40

Multiple Choice

The interest rate falls if

• A)the price level falls or the money supply falls.
• B)the price level falls or the money supply rises.
• C)the price level rises or the money supply falls.
• D)the price level rises or the money supply rises.

---

Definitions:

Work in Process

Goods that are in production but have not yet completed the manufacturing process, considered a type of inventory on the balance sheet.

Finished Goods

A rephrased definition: Products that have completed the manufacturing process and are ready to be sold but are still in the company's inventory.

Raw Materials Inventory

The stock of materials before they are processed or used in the production of goods, part of a company's inventory of goods.

Indirect Materials

Indirect materials are supplies used in the production process that, unlike direct materials, are not part of the finished product, such as lubricants and cleaning supplies.