Which of the Following Is a Common Underlying Macroeconomic Cause

question 30

Multiple Choice

Which of the following is a common underlying macroeconomic cause of financial crises?

• A)Low relative price inflation rates
• B)Narrowing current account deficit
• C)Increases in stock and property prices
• D)Decline in domestic borrowing
• E)Increases in the value of domestic currency

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Definitions:

Manufacturing Overhead

Represents indirect costs involved in producing goods, including maintenance expenses, quality control, and equipment depreciation.

Variable Manufacturing Overhead

The portion of manufacturing overhead costs that vary directly with production volume, such as supplies and indirect labor.

Fixed Manufacturing Overhead

Costs that do not vary with the level of production or sales, such as rent, property taxes, and salaries of permanent employees.

Variable Manufacturing Overhead

Costs of manufacturing that fluctuate with the level of production, such as utilities or commissions, excluding direct materials and direct labor.