An Increase in the Budget Deficit Causes Net Capital Outflow

question 56

Multiple Choice

An increase in the budget deficit causes net capital outflow to

• A)rise,because the supply of loanable funds shifts right.
• B)rise,because the demand for loanable funds shifts right.
• C)fall,because the supply of loanable funds shifts left.
• D)fall,because the demand for loanable funds shifts right.

---

Definitions:

Activity-Based Costing

A costing method that assigns overhead and indirect costs to specific activities related to production.

Production Orders

Instructions or commands produced to initiate the manufacture of a specific quantity of goods at a specified time.

Activity-Based Costing

A costing method that allocates overhead and indirect costs to specific activities, providing more accurate product costing.

Direct Labor Rate

The cost of the work done by those employees who directly manufacture the products, usually measured per hour.