The Level of Investment Spending Is Affected by Changes in the Interest

question 14

Multiple Choice

The level of investment spending is affected by changes in the interest rate, since higher interest rates

• A)will increase the cost of borrowing and thus lower the incentive to purchase capital equipment
• B)will make it more profitable to invest in the stock market
• C)will increase the return on saving
• D)will lower the value of government bonds so banks will lend more to firms and less to the government
• E)all of the above

---

Definitions:

Management Objectives

The specific goals and targets set by the management of an organization to guide decision-making and strategy.

Cardinal Health

An American multinational health care services company that specializes in the distribution of pharmaceuticals and medical products.

Performance Objectives

Specific goals set by a company or an individual to be achieved within a set timeframe to measure success.

Hygiene Factors

Elements of the work environment that can lead to job dissatisfaction if absent or inadequate, such as salary, company policies, and working conditions, but do not necessarily motivate if increased.