Which of the Following Is True

question 53

Multiple Choice

Which of the following is true ?

• A) Keynesians advocate decreasing the money supply during economic recessions but increasing the money supply during economic expansions.
• B) Monetarists advocate increasing the money supply by a constant rate year after year.
• C) Keynesians argue that the crowding-out effect is rather large.
• D) Monetarists argue that the crowding-out effect is rather insignificant.

---

Definitions:

Direct Labor-Hours

The cumulative hours spent by workers who are directly engaged in creating products, serving as the foundation for distributing labor expenses among products.

Activity-Based Costing

A pricing approach that allocates overhead and indirect expenses to associated goods and services according to their consumption of resources.

Predetermined Overhead Rate

A projected rate employed to assign manufacturing overhead expenses to particular products or job orders, utilizing a defined activity base for allocation.

Job-Order Costing System

A method of cost accounting in which costs are assigned to specific jobs or orders, used in manufacturing custom products or services.