If the Fed Raises the Federal Funds Rate

question 91

Multiple Choice

If the Fed raises the federal funds rate,

• A)exports increase and imports decrease.
• B)real GDP increases.
• C)exports decrease and imports increase.
• D)in the short run the interest rate falls.
• E)investment increases.

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Definitions:

Department B

A designated segment within a larger organization, often referred to in context with its specific function or performance.

Departmental Overhead Rate

a specific type of overhead rate calculated for individual departments within a company, allowing for more accurate allocation of overhead costs based on departmental activities.

Departmental Overhead Rate

The rate at which indirect costs are allocated to different departments within a company, often used for costing purposes.

Direct Labor Hours

The total number of hours worked by employees directly involved in manufacturing a product or providing a service, often used in calculating labor cost and efficiency.