Final answer:
Companies emphasize promotion and price during the maturity stage of the product life cycle to differentiate their products and compete in a saturated market. A rise in the supply of money in financial markets leads to a decline in interest rates and an increase in the quantity of loans.
Step-by-step explanation:
Companies tend to emphasize promotion and price of their products during the maturity stage of the product life cycle. During the maturity stage, the market becomes saturated with similar products, leading to increased competition. As a result, companies focus on promotional strategies to differentiate their products and may adjust pricing to maintain or grow their market share.
Regarding the changes in the financial market that will lead to a decline in interest rates, the correct answer is a rise in supply. When there is an increase in the supply of money or credit in the financial market, this typically results in lower interest rates because more funds are available for lending, decreasing the cost of borrowing.
Conversely, when considering the scenario that would lead to an increase in the quantity of loans made and received, the answer is again a rise in supply. An increased supply of money in the financial market means that financial institutions have more capital to loan out, thus increasing the quantity of loans.