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Everything else held constant,an increase in the required reserve ratio will result in ________ in M1 and ________ in M2.
Direct Materials
Materials that become an integral part of a finished product and whose costs can be conveniently traced to it.
Direct Labour
The labor costs directly attributable to the production of goods or services, typically including wages of workers who are physically involved in creation of the product.
Variable Overhead
Expenses that fluctuate with changes in production volume, such as utilities or materials used in the manufacturing process.
Fixed Overhead
Fixed costs that do not vary with the volume of production, such as rent, salaries, and insurance.
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