Which of the following is an example of how a business owner uses macroeconomics to make informed business decisions?
A) A business owner can use macroeconomics to determine whether college graduates are better employees than non-college graduates.
B) A business owner can use macroeconomics to predict whether the Fed will increase or decrease the interest rates in the future in order to determine whether to borrow money now or later.
C) A business owner can use macroeconomics to predict whether gold prices will be higher today or in the future.
D) A business owner can use macroeconomics to predict if it should sell more red t-shirts as opposed to white t-shirts.

Question

Quizplus · Accepted Answer

Macroeconomics studies factors impacting the economy as a whole, like interest rates set by the Federal Reserve. A business owner can use this knowledge to anticipate future borrowing costs and make decisions about when to take loans. A, C, and D refer to microeconomic topics, like hiring preferences, commodity prices, and product differentiation.

Which of the Following Is an Example of How a Business