Inflation in the developing country of terbia has been rising over the last few years and is currently at a very high level. two stock market analysts, stanley durro and michelle thompson, are discussing the possible causes of inflation. michelle thinks that the real reason why prices are rising is because terbia's economy is expanding. stanley disagrees. he argues that the inflation is not demand driven; on the contrary, too much money in the economy is increasing the price level.
which of the following, if true, would weaken stanley's claim that the inflation is driven by an excess supply of money?
a. firms in terbia have reported an increase in the level of unplanned inventories.
b. investment in long-term time deposits has declined in the last two years.
c. the central bank has been increasing the target interest rate at regular intervals and it is now at its highest level in eight years.
d. the level of inflation recorded in terbia is lower than most of its neighboring countries.
e. employment in the agricultural sector has fallen even as agricultural output has increased.

Exercise 6-2 variable costing income statement; explanation of difference in net operating income [lo6-2] ida sidha karya company is a family-owned company located on the island of bali in indonesia. the company produces a handcrafted balinese musical instrument called a gamelan that is similar to a xylophone. the gamelans are sold for $970. selected data for the company’s operations last year follow: units in beginning inventory 0 units produced 200 units sold 180 units in ending inventory 20 variable costs per unit: direct materials $ 130 direct labor $ 300 variable manufacturing overhead $ 30 variable selling and administrative $ 15 fixed costs: fixed manufacturing overhead $ 63,000 fixed selling and administrative $ 25,000 the absorption costing income statement prepared by the company’s accountant for last year appears below: sales $ 174,600 cost of goods sold 139,500 gross margin 35,100 selling and administrative expense 27,700 net operating income $ 7,400 required: 1. under absorption costing, how much fixed manufacturing overhead cost is included in the company's inventory at the end of last year? 2. prepare an income statement for last year using variable costing.