Mixster Concrete Company is considering buying a new cement truck.The owners and their accountants decide that this is the profitable thing to do.Before they can buy the truck,the interest rate and price of trucks change.In which case do these changes both make them less likely to buy the truck?
A)both interest rates and price of trucks rise
B)both interest rates and the price of trucks fall
C)the interest rate rises and the price of trucks fall
D)the interest rate falls and the price of trucks rises

Question

Quizplus · Accepted Answer

If both interest rates and the price of trucks rise, it will increase the cost of borrowing to buy the truck and also increase the cost of purchasing the truck. This would make it less likely for Mixster Concrete Company to buy the truck.

Mixster Concrete Company Is Considering Buying a New Cement Truck