According to Monetarists, Which of the Following Would Be Most

question 131

Multiple Choice

According to monetarists, which of the following would be most important for the control of inflation?

• A) a steady increase in federal expenditures
• B) the imposition of price controls
• C) keeping the growth rate of the money supply low and steady
• D) a steady increase in the size of the budget deficit

---

Definitions:

Manufacturing Overhead

All indirect costs associated with the production process, such as utilities, maintenance, and management salaries, not directly tied to direct materials or direct labor.

Predetermined Overhead Rate

A rate used in cost accounting to allocate overhead costs based on an estimated activity level.

Direct Labor-hours

The hours that workers contribute directly towards the manufacture of goods over a specified period.

Fixed Manufacturing Overhead

Costs associated with production that do not vary with the level of output, such as depreciation of machinery and the salary of the factory manager.