The lower the rate of interest, the smaller is
A) the economic order quantity
B) the number of units sold
C) the cost of carrying inventory
D) the safety stock

Name: The lower the rate of interest, the smaller is A) the economic order quantity B) the number of units sold C) the cost of carrying inventory D) the safety stock
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Question

The lower the rate of interest, the smaller is
A) ​the economic order quantity
B) the number of units sold
C) ​the cost of carrying inventory
D) ​the safety stock

Quizplus · Accepted Answer

Lower interest rates decrease the cost of holding inventory, so the cost of carrying inventory is smaller.

The Lower the Rate of Interest, the Smaller Is