The Fed _{--------------------}influence the Real Interest Rate in the Short

question 6

Multiple Choice

The Fed _{--------------------}influence the real interest rate in the short run_{--------------------} and influence the real interest rate in the long run.

• A)can; can
• B)cannot; cannot
• C)might be able to; might be able to
• D)can; cannot
• E)cannot; can

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Definitions:

LIFO

Last In, First Out, is an inventory valuation method assuming that goods purchased last are the first to be sold.

FIFO

First In, First Out, a method used in accounting to manage inventory and financial matters where the first items placed in inventory are the first sold or used.

Average Cost

A method of inventory valuation that calculates the cost of goods sold and ending inventory based on the weighted average cost of all goods available for sale.

First-In, First-Out

An inventory valuation method where the cost of the earliest goods purchased are the first to be recognized in determining cost of goods sold.