Which of the Following Statements Is Correct

question 106

Multiple Choice

Which of the following statements is correct?

• A)The interest rate that is usually reported is the interest rate that has been corrected for inflation.
• B)The supply of,and demand for,loanable funds depend on the real (rather than nominal)interest rate.
• C)If the nominal interest rate has decreased and the real interest rate has also decreased,then the inflation rate must have decreased as well.
• D)All of the above are correct.

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Definitions:

Machine Hours

A measure of the amount of time a machine is operated, used in allocating manufacturing costs to products.

Sales Mix

The composition of different products or services sold by a company, indicating the proportion each contributes to total sales.

Special Order

A custom or one-time order that may require special pricing or production adjustments.

Selling Price

The amount of money charged for a product or service, or the sum a buyer pays to acquire something.