A Number of Economic Variables Affect Both the Economy and Industries.Which

question 90

Multiple Choice

A number of economic variables affect both the economy and industries.Which of the following statements is false?

• A) Industries with high levels of operating and financial leverage should benefit from lower inflation rates.
• B) Banks generally benefit from volatile interest rates, while stable interest rates reduce margins.
• C) Consumers who are optimistic about the economy will spend money on high-priced items, such as autos and houses.
• D) The abundance or scarcity of input components can affect the perceived attractiveness of an industry.
• E) None of the above (that is, all are true statements)

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U.S. Constitution

The foundational legal document establishing the framework of government and fundamental laws of the United States of America.

U.S. Constitution

The supreme law of the United States, outlining the national framework of government and fundamental principles.

Precedent

A legal decision or form of conduct that serves as an example or rule for future cases of a similar nature.

Capital Structure

The composition of a company's debts and equity, including bonds, loans, preferred stocks, and common equity, which shows how a firm finances its overall operations and growth.