An example of an economic variable in the societal environment is interest rates

Business Dec 27, 2020

An example of an economic variable in the societal environment is interest rates. Indicate whether the statement is true or false

Expert Solution

The given statement is true.

Explanation:

Economic variable refers to the market factors that are used to analyze the functioning of a market and an economy as a whole. Economic variables include the money supply, inflation rate, wage rate, interest rate, and so on. Interest rate is considered an economic variable because any change in it will influence a consumer's consumption decision and an investment decision of a producer.

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