An Increase in the Interest Rate Could Have Been Caused

question 89

Multiple Choice

An increase in the interest rate could have been caused by

• A)a fall in the price level causing the money-demand curve to shift leftward.
• B)a fall in the price level causing the money-demand curve to shift rightward.
• C)a rise in the price level causing the money-demand curve to shift leftward.
• D)a rise in the price level causing the money-demand curve to shift rightward.

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Definitions:

Standard Rate

A predetermined cost that is often used in budgeting and costing exercises to estimate the expected rate for services or products.

Direct Labour

The cost associated with employees who are directly involved in the production process.

Standard Hours

The amount of labor time that is expected to be spent on a particular task or to produce a specific quantity of goods under normal conditions.

General Ledger

A comprehensive record of all financial transactions over the life of a company.