Stable interest rates reduce margins

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Several economic variables affect both the economy and industries. Which of the following statements is false?

1. Banks generally benefit from volatile interest rates, while stable interest rates reduce margins.

2. Industries with high levels of operating and financial leverage should benefit from lower inflation rates.

3. Consumers who are optimistic about the economy will spend money on high-priced items, such as automobiles and houses.

4. The abundance or scarcity of input components can affect the perceived attractiveness of an industry.

Reference no: EM133253981

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