Which of the Following Is NOT a Reason That Interest

question 54

Multiple Choice

Which of the following is NOT a reason that interest rates remained low despite high budget deficits following the financial crisis?

• A)increased demand for U.S. government bonds
• B)the perceived riskiness of alternative investments such as stocks
• C)low interest rates on CDs and similar short-term assets
• D)increases in expected inflation

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Definitions:

Absorption Costing

A costing method that includes all manufacturing costs—direct materials, direct labor, and both variable and fixed manufacturing overhead—in the cost of a product.

Variable Costing

A ledger maintaining technique that factors in only the variable costs incurred during production (direct materials, direct labor, and variable manufacturing overhead) into product pricing.

Absorption Costing

In this financial accounting strategy, the entirety of manufacturing expenses—encompassing direct materials, direct labor, and both variable and fixed overheads—are captured in the cost of a product.

Segmented Income Statement

An income statement broken down into segments or divisions of a company, showing financial performance for each separately.