Matching terms [10 min] Consider the following terms:

a. Flexible Budget

b. Flexible Budget Variance

c. Sales Volume Variance

d. Static Budget

e. Variance

Consider the following definitions:

——— 1. A summarized budget for several levels of volume that separates variable costs from fixed costs.

——— 2. The budget prepared for only one level of sales volume.

——— 3. The difference between an actual amount and the budget.

——— 4. The difference arising because the company actually earned more or less revenue, or incurred more or less cost, than expected for the actual level of output.

——— 5. The difference arising only because the number of units actually sold differs from the static budget units.

Requirement

1. Match each term to the correct definition.

A) plot the m1 and m2 money stock in the us from 1990-2015. (hint: you may use the data tools provided by fred.) (b) plot the nominal interest rate from 1960 to 2014. (hint: you can either use the daily interest rates for selected u.s. treasury, private money market and capital market instruments from or the effective federal funds rate fromfred.) (c) the consumer price index (cpi) is a measure of the average change over time in the prices paid by urban consumers for a market basket of consumer goods and services. intuitively, the cpi represents the cost of living or the average price level. plot the cpi from 1960 to 2013.(d) the inflation rate is the yearly percentage change in the average price level. in practice, we usually use the percentage change in the cpi to compute the inflation rate. plot the inflation rate from 1960 to 2013.(e) explain the difference between the ex-ante and ex-post real interest rate. use the fisher equation to compute the ex-post real interest rate. plot the nominal interest rate and the ex-post real interest rate from 1960 to 2013 in the same graph.