A furniture producer plans to borrow to buy new machinery. Which change is most likely to make the investment less attractive?
A decrease in the interest rate on business loans
A decrease in the price of the machinery
An increase in the expected sales from the machinery
An increase in the interest rate on business loans
75 exam-style questions on AQA GCSE Economics 2.1 Introduction to the national economy, covering 2.1.1a What an interest rate is, 2.1.1b Interest rates and consumer decisions, 2.1.1c Interest rates, producer decisions and calculations, 2.1.2a UK government revenue and spending, and 2.1.2b Direct, indirect and progressive taxation. Each one has a worked solution and a mark scheme showing where the marks go.