Monetarists Assert That Monetary Policy May Affect Aggregate Demand Through

question 5

Multiple Choice

Monetarists assert that monetary policy may affect aggregate demand through

• A)only an interest rate channel.
• B)only an exchange rate channel.
• C)only two channels: interest rates and exchange rates.
• D)many channels.

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Definitions:

Standard Hours Allowed

The number of labor hours that should have been worked according to budgeted productivity levels for the actual level of production achieved.

Labor Rate Variance

The difference between the actual hourly wage paid to workers and the standard or expected wage rate.

Standard Labor Rate

The predetermined hourly wage rate used in cost accounting to calculate labor costs.

Standard Hours Allowed

The number of hours that should have been worked for the actual production achieved, based on pre-established standards.