How Do Low Interest Rates Affect a Business

question 57

Multiple Choice

How do low interest rates affect a business?

• A) Firms tend to defer investments.
• B) Firms can easily borrow money to finance future growth.
• C) Consumer demand slows down.
• D) Business credit is harder to obtain.

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Definitions:

Exoskeleton

A rigid external covering that supports and protects the bodies of certain animals, such as insects, crustaceans, and some mollusks.

Echinodermata

A phylum of marine animals including sea stars, sea urchins, and sea cucumbers, characterized by radial symmetry and a unique water vascular system.

Echinoderms

A phylum of marine animals that includes starfish, sea urchins, and sea cucumbers, characterized by radial symmetry and a unique water vascular system.

Radial Symmetry

A symmetrical arrangement of parts around a central axis, as seen in many aquatic organisms, allowing them to interact with their environment from any direction.