Answer:
C. Most businesses decide to modernize and expand their manufacturing capacity, and to install new equipments to reduce labor cost
Explanation:
Interest rate is the cost attached to borrowed money. It is also the return for the risk of lending.
Businesses borrow to make profit in the future. They also borrow to finance the purchase of equipments. The interest on these loan is what stimulate the economy which encourages people to borrow, lend and spend.
When businesses continue to expand their production capacity and also install new equipment, such will lead to an increase in interest rate in the economy because most industries often times raise credit to finance assets purchase. An increase in demand for money raises interest rate and vice versa.
Other causes of high interest rate in an economy are;
- Inflation, which is the consistent rise in the prices of goods and services as a result of too much money in circulation. The higher the rate of inflation, the higher the interest rate.
-Government, through central bank, issuing directives on the effect of monetary policy on interest rate. This is done through open market operation.
When there is lower interest rate in the economy, amount paid as interest by consumers will be less hence have money to spend. This will also affect business as they will be able to buy equipments and produce more with cheap funds.
Answer: is to act as the basic principle of production decision making. "What to produce", "How to produce", and "For whom it should be produced" are the three basic questions of economics
Explanation:
I think the answer is d since the first 2 options are true
Answer:
Organizational effectiveness
Explanation:
The customer service professional team in an organization can also be called organizational effective team because their work is to understand the taste of the customers and work toward achieving them. There roles within the organizational are:
1) strategize for higher adoption of the product,
2) examining their faults and defaults and working towards improving them and so on.
