An Increase in

question 38

Multiple Choice

An increase in

• A)nominal output raises the interest rate while a fall in real output lowers the interest rate,given the price level and the money supply.
• B)real output decreases the interest rate while a fall in real output increases the interest rate,given the price level.
• C)real output raises the interest rate while a fall in real output lowers the interest rate,given the money supply.
• D)nominal output raises the interest rate while a fall in real output lowers the interest rate,given the price level.
• E)real output raises the interest rate while a fall in real output lowers the interest rate,given the price level and the money supply.

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Definitions:

Variable Overhead Rate Variance

The difference between the actual variable overhead incurred and the expected variable overhead based on standard cost rates.

Direct Labor-hours

The aggregate of hours expended by staff members actively participating in the manufacturing process, utilized to assign labor charges to various products.

Variable Overhead Efficiency Variance

This variance measures the difference between the actual hours taken to produce a good and the standard hours expected, multiplied by the variable overhead rate per hour.

Variable Overhead

Costs that vary in direct proportion to changes in the operational activity of a business, such as utility bills or raw material costs.