A Rise in Short-Term Interest Rates That Is Believed to Be

question 18

Multiple Choice

A rise in short-term interest rates that is believed to be only temporary

• A)is likely to have a significant effect on long-term interest rates.
• B)will have a bigger impact on long-term interest rates than if the rise in short-term rates had been permanent.
• C)is likely to have only a small impact on long-term interest rates.
• D)cannot possibly affect long-term interest rates.

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Definitions:

Direct Labour-Hour

A measure of the amount of time a worker spends on a specific task or production activity.

Raw Materials Purchased

The total cost of primary materials acquired for use in the manufacturing process within a specific accounting period.

Direct Materials

The raw materials that are directly used in the production of a product, easily traceable to that product.

Cost of Goods Manufactured

The total production cost incurred by a company to manufacture products in a specific period, including costs of materials, labor, and overhead.