Other Things Being Equal, Higher Real Interest Rates Tend to

question 29

Multiple Choice

Other things being equal, higher real interest rates tend to

• A)increase every component of desired investment expenditure.
• B)reduce every component of desired investment expenditure.
• C)reduce every component of desired investment expenditure except plant and equipment.
• D)reduce every component of desired investment expenditure except residential housing.
• E)reduce every component of desired investment expenditure except inventories.

---

Definitions:

Logistics

the process of planning, implementing, and controlling the efficient and effective forward and reverse flow and storage of goods, services, and related information from point of origin to point of consumption.

Supply Chain Management

The active management of supply chain activities to maximize customer value and achieve a sustainable competitive advantage, encompassing everything from production to product delivery.

Economies of Scale

Cost advantages that enterprises obtain due to their scale of operation, with cost per unit of output generally decreasing with increasing scale.

Pull Strategy

A supply chain strategy in which customer orders drive manufacturing and distribution operations.