Solved

Why Would a Rise in Interest Rates Adversely Affect MNCs

Question 19

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.

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions

Unlock this Answer For Free Now!

View this answer and more for free by performing one of the following actions

qr-code

Scan the QR code to install the App and get 2 free unlocks

upload documents

Unlock quizzes for free by uploading documents