If a Central Bank Does Not Want to See Its

question 20

Multiple Choice

If a central bank does not want to see its currency rise in value,it may pursue ________ monetary policy to ________ the domestic interest rate,thereby weakening its currency.

• A)expansionary;raise
• B)contractionary;raise
• C)expansionary;lower
• D)contractionary;lower

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Definitions:

Fixed Manufacturing Overhead

Costs that do not vary with the level of production, such as rent, insurance, and salaries for managers.

Contribution Margin

What’s left of the sales proceeds once variable expenditures are taken out.

Direct Labor

The labor costs directly attributed to the production of goods or services; it includes wages paid to workers physically making a product.

Constrained Resource

A limited resource in a production process that can restrict the company's ability to produce goods, impact scheduling, and ultimately affect throughput.