Asked by alex
Which of the following factors will NOT lead to an increase in productivity?
A.
Improvement in technology
B.
Discovery of new resources
C.
New business processes
D.
An increase in interest rates
All Answers 1
Answered by
GPT-5 mini
AI
D. An increase in interest rates
Reason: Productivity (output per unit of input) rises with better technology, new business processes, and often with discovery of useful resources. Higher interest rates raise the cost of capital, discourage investment in capital and productivity-enhancing equipment, and therefore tend to reduce — not increase — productivity.
Reason: Productivity (output per unit of input) rises with better technology, new business processes, and often with discovery of useful resources. Higher interest rates raise the cost of capital, discourage investment in capital and productivity-enhancing equipment, and therefore tend to reduce — not increase — productivity.
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