Which of the Following Will Happen If There Is a Fall

question 14

Multiple Choice

Which of the following will happen if there is a fall in the supply of credit in an economy without any change in the demand for credit?

• A) The real interest rate will fall.
• B) The real GDP of the economy will fall.
• C) The labor demand in the economy will increase.
• D) The consumption expenditure in the economy will increase.

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Definitions:

Indirect Manufacturing Cost

Costs related to manufacturing that cannot be directly linked to specific products, such as maintenance and factory utilities.

Produced Units

The total number of units of a product that have been completed during a specific period by a manufacturing process or company.

Indirect Manufacturing Cost

Costs related to production that cannot be directly tied to a specific product, such as maintenance, supervision, and utilities.

Produced Units

The quantity of finished goods that a manufacturing or production process has completed over a specific period.