Why Would a Rise in Interest Rates Adversely Affect MNCs

question 45

Multiple Choice

Why would a rise in interest rates adversely affect MNCs that produce durable goods?

• A)A rise in interest rates increases the cost that consumers of those durable goods have to pay and,therefore,reduces the demand for those durable goods.
• B)A rise in interest rates causes the value of the domestic currency to decrease,making the cost of the durable goods worldwide more expensive.
• C)A rise in interest rates indicates economic disruption in the country and makes it more difficult for MNCs to sell their products worldwide.
• D)A rise in interest rates signals the MNCs inability to continue to produce at the level it has been producing,and lower product means lower profits.

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Definitions:

Efficiency

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Longest Task Time Heuristic

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Precedence Diagram

A graphical representation of the sequence in which tasks must be performed in a project, showing the dependencies between tasks.

Theoretical Minimum

The lowest possible amount of effort or resources required to execute a task or process under ideal conditions.