According to the Political Business Cycle Theory,if the Central Bank

question 62

Multiple Choice

According to the political business cycle theory,if the central bank wanted to see an incumbent re-elected,prior to the election it might

• A)lower the discount rate and sell bonds.
• B)lower the discount rate and buy bonds.
• C)raise the discount rate and sell bonds.
• D)raise the discount rate and buy bonds.

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Definitions:

Contribution Margin

The excess of sales over variable costs; the excess of manufacturing margin over variable selling and administrative expenses.

Bottleneck Hour

A term used in production and manufacturing to describe the hour or period where the flow of processes slows down due to a limitation in output capabilities, impacting overall productivity.

Bottleneck

A point of congestion in a production system that occurs when workloads arrive too quickly for the production process to handle.

Fixed Capacity

The maximum output that a facility can produce in a given period under normal circumstances, without changing the physical setup.