Which of the Following Is Correct

question 55

Multiple Choice

Which of the following is correct?

• A)An increase in the money supply causes the interest rate to decrease so that aggregate demand shifts left.
• B)An increase in stock prices reduces consumption spending so that aggregate demand shifts left.
• C)An increase in the price level causes the exchange rate to rise so that aggregate demand shifts left.
• D)A recession in other countries reduces U.S.net exports so that U.S.aggregate demand shifts left.

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Definitions:

Material Variances

Material variances are differences between the actual costs of materials and the expected (or standard) costs.

Cost Variances

The difference between actual costs and standard or budgeted costs in business operations.

Standard Manufacturing Costs

The predetermined cost of manufacturing a single unit, including direct labor, direct materials, and manufacturing overhead, under normal conditions.

Sales Price Variance

The difference between the actual price at which goods are sold and the expected (or standard) selling price, affecting revenue.