Which of the Following Factors Was Primarily Responsible for the Excess

question 15

Multiple Choice

Which of the following factors was primarily responsible for the excess production capacity in the U.S. in the first half of the twentieth century?

• A) Technological innovation revolutionized production during this time.
• B) Many firms from other nations shifted their production facilities to the U.S.
• C) Domestic demand was at a historic low and resulted in excess capacity.
• D) Swelling labor supply of returning military after World War II.
• E) Influx of migrant laborers from Europe and Japan.

---

Definitions:

Cash Balance Target

A strategy where a company aims to maintain a specific amount of cash on hand to meet operational and emergency needs.

Weekly Interest Rate

An interest rate quoted or applied on a weekly basis, often used in short-term loans or savings accounts to indicate the rate of interest over a week's period.

Marketable Securities

Financial instruments that can be quickly converted to cash at market value.

Monthly Standard Deviation

A statistical measure that quantifies the variability or volatility of returns over a monthly period.