The Rule That Is Used to Set a Target for the Federal

question 68

Multiple Choice

The rule that is used to set a target for the federal funds rate in response to deviations of real output and inflation from their targets is

• A)the Taylor rule.
• B)a nonactivist rule.
• C)a money-growth rule.
• D)Mc Cullum's rule.

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Definitions:

Direct Labor-Hours

A measure of the labor directly involved in manufacturing a product, expressed in hours.

Predetermined Overhead Rate

A pre-determined rate for distributing overhead expenses to products or job orders, calculated prior to the beginning of the period using projected costs and estimated levels of activity.

Direct Labor-Hour

A direct labor-hour is a unit of measurement for the amount of work performed by employees who are directly involved in the production of goods or services.

Fixed Manufacturing Overhead

The costs that do not vary with the level of production or sales, such as salaries of managers, rent of the factory, and depreciation of manufacturing equipment.