An Increase in the Budget Deficit Would Cause a

question 20

Multiple Choice

An increase in the budget deficit would cause a

• A)shortage of loanable funds at the original interest rate,which would lead to falling interest rates.
• B)surplus of loanable funds at the original interest rate,which would lead to rising interest rates.
• C)shortage of loanable funds at the original interest rate,which would lead to rising interest rates.
• D)surplus of loanable funds at the original interest rate,which would lead to falling interest rates.

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Definitions:

High-low Method

A way to estimate the cost-behavior formula that uses the highest and lowest levels of activity to determine fixed and variable costs.

Activity Index

A measure or indicator used to gauge activity levels within a particular domain, such as manufacturing or stock trading volume.

Process Cost System

A cost accounting system used when a company manufactures a large volume of similar products.

Manufacturing Processes

Manufacturing processes are the methods and techniques used to convert raw materials into finished goods.