Hardwood Furniture Store considered building a store in a new location. The owners and their accountants decided that this was the profitable thing to do. However, soon after they made this decision, both the interest rate and the cost of building the store changed. In which case do these changes both make it less likely that they will now build the store?
A)Interest rates rise and the cost of building the store rises.
B)Interest rates rise and the cost of building the store falls.
C)Interest rates fall and the cost of building the store rises.
D)Interest rates fall and the cost of building the store falls.

Question

Quizplus · Accepted Answer

Both an increase in interest rates and an increase in the cost of building the store would decrease the profitability of building the store, making it less likely for Hardwood Furniture Store to build the store in the new location.

Hardwood Furniture Store Considered Building a Store in a New