Which of the Following Lists Contains Only Actions That Increase

question 84

Multiple Choice

Which of the following lists contains only actions that increase the money supply?

• A)lowering the bank rate; raising the reserve requirement ratio
• B)lowering the bank rate; lowing the reserve requirement ratio
• C)raising the bank rate; raising the reserve requirement ratio
• D)raising the bank rate; lowering the reserve requirement ratio

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Definitions:

Fixed Manufacturing Cost

Costs that do not vary with the level of production output, such as rent, property taxes, and salaries of permanent employees.

Relevant Range

The span of activity levels within which the assumptions made about cost behavior and business operations are valid.

Variable Cost

Financial outlays that change directly with changes in production or sales amounts, such as direct labor and raw materials.

Incremental Manufacturing Cost

The additional costs incurred when increasing production by one additional unit.