When Private Firms Reduce Investment Because of the Increase in Interest

question 13

Multiple Choice

When private firms reduce investment because of the increase in interest rates brought about by government borrowing it is termed:

• A)logrolling.
• B)crowding out.
• C)monetary policy.
• D)rent seeking.

Differentiate between the Business Model Canvas and more traditional business planning documents.

Recognize the value of planning and forecasting for businesses of all sizes.

Understand the role of planning in identifying the need, vision, and direction for a business.

Understand the impact of racism and ethnocentrism on individual lives and cultures.

---

Definitions:

Materials Quantity Variance

The difference between the actual quantity of materials used in production and the standard quantity expected, multiplied by the standard cost per unit of material.

Standard Material

The predetermined quantity and cost of materials expected to be used in producing a unit of product, used as a benchmark for cost control.

Materials Price Variance

The difference between the actual cost of materials and the expected (standard) cost of materials used in production.

Materials Quantity Variance

The difference between the actual quantity of materials used in production and the expected quantity, which can affect costs.