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)

---

Definitions:

Domestication

The process by which humans cultivate plants and breed animals for qualities that are advantageous or desirable, leading to genetic changes in the species.

Americas

A collective term for the continents of North and South America, including the associated islands and regions therein.

Domestication

The process of adapting wild plants and animals for human use, such as for food, work, clothing, or companionship.