In Reaction to the Then Developing 2007-2009 Financial Crisis, Short-Term

question 142

Multiple Choice

In reaction to the then developing 2007-2009 financial crisis, short-term interest rates _______ sharply and were ______ than ______ percent by October, 2008.

• A)rose, less, 0.5
• B)rose, more, 10
• C)declined, more, 6.
• D)declined, less, 20
• E)none of the above

---

Definitions:

Variable Cost Method

An accounting method where product costs include variable expenses, changing with the level of output, but exclude fixed costs.

Markup Per Unit

The sum added onto the purchase price of products to account for overhead costs and generate profit.

Unit Selling Price

The amount of money charged to the customer for a single unit of product or service.

Contribution Margin

The difference between sales revenue and variable costs, representing the amount that contributes to covering fixed costs and generating profit.