An Increase in Interest Rates

question 225

Multiple Choice

An increase in interest rates

• A)decreases investment spending on machinery,equipment,and factories,but increases consumption spending on durable goods and net exports.
• B)decreases investment spending on machinery,equipment,and factories,and consumption spending on durable goods,but increases net exports.
• C)decreases investment spending on machinery,equipment,and factories,consumption spending on durable goods,and net exports.
• D)increases investment spending on machinery,equipment,and factories,consumption spending on durable goods,and net exports.

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Definitions:

Delivery Cycle Time

The total time taken from when a customer places an order to the time the product is delivered to the customer.

Manufacturing Cycle Efficiency

A measure of the efficiency of a manufacturing process, calculated as the ratio of value-added time to the total cycle time.

Delivery Cycle Time

The complete duration from the reception of an order to the delivery of the product to the client.

Queue Time

The period during which materials or parts wait in line to be processed in manufacturing.