The Country of Solidia Is Politically Very Stable and Has

question 37

Multiple Choice

The country of Solidia is politically very stable and has a long tradition of respecting property rights.If several other countries suddenly became politically unstable,we would expect Solidia's

• A)real interest rate to rise.
• B)real exchange rate to rise.
• C)net exports to rise.
• D)None of the above is likely.

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Definitions:

Variable Costing

A costing method that includes only variable manufacturing costs—direct materials, direct labor, and variable manufacturing overhead—in the cost of goods sold and excludes fixed manufacturing overhead.

Absorption Costing

A costing method that includes both variable and fixed manufacturing overhead costs in the cost of a product.

Net Income

The net income a business realizes once it has subtracted all outgoings and fiscal charges from its revenue.

Absorption Costing

A costing method that includes all manufacturing costs - direct materials, direct labor, and both variable and fixed manufacturing overhead - in the cost of a product.