Which of the Following Is Not One of the Three

question 68

Multiple Choice

Which of the following is not one of the three commonly used methods for determining transfer prices?

• A) Dictated
• B) Negotiated
• C) Cost-plus
• D) Market-based

---

Definitions:

Crowding Out

A situation where increased government spending leads to reduced investment in the private sector, often due to higher interest rates.

Multiplier

A factor by which an initial change in aggregate spending will alter total economic output through a series of induced spending.

Interest Rate

The amount charged, expressed as a percentage of the principal, by a lender to a borrower for the use of assets.

Crowding Out

An economic situation where private investment decreases due to an increase in government borrowing and spending.