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)Interest rates rise and truck prices rise.
B)Interest rates fall and truck prices rise.
C)Interest rates rise and truck prices fall.
D)Interest rates fall and truck prices fall.

Question

Quizplus · Accepted Answer

When interest rates rise, the cost of borrowing money to buy the truck increases, making it less affordable. Similarly, when truck prices rise, the initial investment required also increases. Both these factors together make it less likely for Mixster Concrete Company to proceed with the purchase.

Mixster Concrete Company Is Considering Buying a New Cement Truck