The Reason Why Some Economists Believe That Attempts by the Fed

question 2

Multiple Choice

The reason why some economists believe that attempts by the Fed to surprise the public in a systematic way cannot be successful is that

• A)information about the Fed's plans will inevitably be leaked to the public.
• B)the Fed announces its goals before Congress and publishes its policy actions in the Federal Reserve Bulletin six weeks after they take place.
• C)the public would eventually figure out what the Fed's policies were, negating the Fed's surprise.
• D)competition in the money markets would neutralize the Fed's intervention.

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Definitions:

Predetermined Overhead Rate

A rate calculated by dividing estimated overhead costs by an allocation base, used to allocate overhead to products or services.

Direct Labour-Hours

The amount of time dedicated by employees for the manufacture of products, directly impacting production costs and efficiency.

Overhead Applied

Overhead applied refers to the allocation of overhead costs to specific jobs or production units based on a predetermined rate or basis.

Job-order Costing System

A costing method that assigns costs to specific batches or lots of products, often tailor-made for customers.