Multiple choice

A change in interest rates is an example of which external factor?

  1. Political

  2. Economic

  3. Technological

  4. Competitive
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Interest rates directly affect borrowing costs, consumer spending, and inflation, making them a key economic factor in a PESTEL analysis. They are determined by monetary policy and impact the overall financial environment of a business.

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