Which of the Following Would NOT Explain Why Managers Track

question 79

Multiple Choice

Which of the following would NOT explain why managers track interest rates?

• A) High interest rates make the cost of capital cheaper for a firm.
• B) High interest rates could delay a firm's expansion.
• C) Low interest rates make it easier for a firm to borrow money.
• D) Low interest rates increase market demand and economic growth.

---

Definitions:

Intermediate Goods

Products used as inputs in the production of other goods, including raw materials, components, and completed inventory.

Per Capita

A statistical measure that represents the average per person, commonly used to compare economic indicators such as income or GDP among different populations.

Real GDP

Measures the value of all goods and services produced by an economy, adjusted for inflation, to reflect the actual economic output.

National Income

The total value of all goods and services produced by a country's economy over a specific period, after adjustments for income from foreign investments and payments to other countries.