If MsAnniston Transfers $1,000 from Her Checking Account to Her Money

question 113

Multiple Choice

If Ms.Anniston transfers $1,000 from her checking account to her money market account, then

• A) M₁ falls and M2 remains the same.
• B) M₁ falls and M2 rises.
• C) both M₁ and M2 rise.
• D) M₁ remains the same and M2 rises.

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Definitions:

Manufacturing Overhead

Costs incidental to the manufacturing process that do not include the costs of direct materials and direct labor.

Cost of Goods Sold

The direct costs attributable to the production of the goods sold by a company, including the cost of materials and labor.

Cost of Goods Manufactured

The total cost incurred by a company to produce goods within a specified period, including costs related to materials, labor, and manufacturing overhead.

Direct Labor Costs

The salary and benefits awarded to staff members actively participating in the manufacturing of products or provision of services.