Which of the Following Is (Are) True About the Loanable

question 51

Multiple Choice

Which of the following is (are) true about the loanable funds market?

• A) Lenders demand funds in the loanable funds market.
• B) In general, high interest rates make lending less attractive.
• C) Less funding is demanded at higher interest rates.
• D) A and B are true.

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Definitions:

Direct Materials

Raw materials that can be directly traced to the production of specific goods or services.

Direct Labor-Hours

The sum of hours contributed by personnel directly employed in the process of manufacturing.

Variable Overhead

Costs that fluctuate with the level of production activity, such as utilities or raw materials.

Direct Material

Basic substances that are directly used and can be readily identified in the final product.