Considering Primary Effects Through the Price Level, Interest Rates, and Income

question 3

Multiple Choice

Considering primary effects through the price level, interest rates, and income only, contractionary fiscal policy:

• A)increases both the supply and demand for dollars.
• B)increases the supply of dollars but reduces the demand.
• C)reduces the supply of dollars but increases the demand.
• D)reduces both the supply and demand for dollars.

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Definitions:

Dispatching Rule

A guideline or procedure used to decide the order in which jobs, tasks, or items are processed or addressed.

Shortest Processing Time

A scheduling strategy that prioritizes tasks or operations based on the shortest amount of time required to complete them.

Defect Rate

The number of goods produced that are outside the company’s boundaries of acceptable quality.

Tolerance Range

The boundaries a manager sets in determining the acceptable quality of a product.