Question ID:PT17 S3 Q1 Passage:If a country’s manufacturing capacity is fully utilized, there can be no industrial growth without new capital investment. Any reduction in interest rates produces new capital investment. Stem:Which one of the following can be properly concluded from the statements above? Correct Answer Choice:BChoice A:Interest rates might in exceptional cases be reduced without there being any subsequent investment of new capital. Choice B:A reduction in interest rates might cause a precondition for industrial growth to be met. Choice C:If a country’s manufacturing capacity is underutilized, interest rates should be held constant. Choice D:New capital investment that takes place while interest rates are rising cannot lead to industrial growth. Choice E:Manufacturing capacity newly created by capital investment needs to be fully utilized if it is to lead to industrial growth.