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Change in interest rate is an example of which dimension?

Answer and explanation

Correct answer: Economic dimension

The economic dimension of the business environment includes factors affecting money, credit, borrowing, investment and the cost of finance. An interest-rate change directly changes borrowing costs and may influence consumption and investment decisions. Hence option B, economic dimension, is correct. Social, political and technological dimensions concern different types of environmental factors and do not best classify the rate change itself.

Related tags

Economic-EnvironmentInterest-RateBusiness-EnvironmentBusiness StudiesClass 12Dimensions Of Business EnvironmentBusiness EnvironmentClass 12 Mcq

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