If Confidence in the Open Economy of the United States

question 15

Multiple Choice

If confidence in the open economy of the United States suddenly decreases, and fewer people want to invest in U.S. assets, the _______ curve for loanable funds will shift to the _______.

• A) demand; right
• B) demand; left
• C) supply; right
• D) supply; left

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Definitions:

Fixed Manufacturing Overhead Rate

A constant charge that represents the total fixed manufacturing overhead costs divided by the standard allocation base.

Variances

The difference between planned or expected financial outcomes and the actual results achieved, often analyzed in budgeting and cost control.

Direct Labor-Hours

The number of hours spent by workers producing a company's goods, a measure of direct labor input.

Standard Cost System

An accounting method where costs are predetermined for product costing, facilitating variance analysis between expected and actual costs.