A Decrease in the Interest Rate, Other Things Being Equal

question 68

Multiple Choice

A decrease in the interest rate, other things being equal, causes a(n) :

• A) upward movement along the demand curve for money.
• B) downward movement along the demand curve for money.
• C) rightward shift of the demand curve for money.
• D) leftward shift of the demand curve for money.

---

Definitions:

Overhead Application Rate

The overhead application rate is a calculated rate used to apply or allocate overhead costs to individual units of production, based on a specific formula, such as machine hours or labor hours.

Overapplied Overhead

A scenario in which the overhead cost assigned to manufacturing exceeds the actual overhead expenses incurred.

Underapplied Overhead

Occurs when the allocated manufacturing overhead cost is less than the actual overhead cost incurred.

Factory Overhead Account

An accounting category that aggregates all indirect costs associated with the manufacture of goods, such as utilities, maintenance, and salaries of non-direct labor.