In 2001, the FOMC Reversed Course, and Between the Beginning

question 130

Multiple Choice

In 2001, the FOMC reversed course, and between the beginning of 2001 and mid-2003, the FOMC _____ the interest rate from _____ to _____.

• A) raised; 1 percent; 6.5 percent
• B) raised; 4.75 percent; 6.5 percent
• C) lowered; 6.5 percent; 1 percent
• D) lowered; 6.5 percent; 4.75 percent
• E) raised; 1.0 percent; 5.25 percent

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Definitions:

Special Order

A one-time order or contract that is outside of a company’s normal production or service offerings, often requiring special terms.

Variable Cost

Costs that vary directly with the level of production or volume of output.

Fixed Manufacturing Overhead

Costs associated with manufacturing that do not vary with the level of production, such as rent, salaries of permanent staff, and depreciation of factory equipment.

Constrained Resource

A limited resource within a production or project environment that restricts the output or completion time.