The Graph Shows Saving Supply and Investment Demand Curves

question 14

Multiple Choice

The graph shows saving supply and investment demand curves. In panel A, saving represents the supply of loanable funds. In Panel B, investment represents the demand for loanable funds. What is true about these curves?

• A) An increase in interest rates increases the quantity of saving supplied.
• B) The quantity of saving is negatively related to the interest rate.
• C) A decrease in interest rates decreases the quantity of investment demanded.
• D) The quantity of investment is positively related to the interest rate.

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Definitions:

Budgeted Factory Overhead

The estimated costs associated with running a factory that are not directly tied to producing goods, such as utilities and maintenance.

Direct Labor Hours

The total number of hours worked by employees directly involved in the production process of goods or services.

Single Plantwide Overhead Rate

A costing method where a single overhead rate is used to allocate all manufacturing overhead costs to products, regardless of the department in which the costs were incurred.

Direct Labor Hours

The accumulated hours that employees dedicated to the manufacturing process or service provision have worked.