Which of the Following Does NOT Occur If Home Starts

question 53

Multiple Choice

Which of the following does NOT occur if Home starts a policy of permanent fiscal expansion:

• A) Home's exchange rate increases.
• B) Foreign's interest rate rises.
• C) Home output rises.
• D) Foreign output rises.
• E) Current Account Balance increases.

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Definitions:

Variable Costs

Costs that change in proportion to the level of production or sales activity.

Direct Labor Budget

An estimation of the cost and amount of labor required for production or services, included within a company's overall budget planning.

Wage Rate

The amount of money paid to an employee per unit of time or per unit of output, which can be influenced by several factors including industry, occupation, and geographical location.

Production Budget

A financial plan that estimates the number of units that must be manufactured to meet sales goals and manage inventory levels.