Which economic factor is evaluated in PESTLE analysis?

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In PESTLE analysis, the economic factor specifically focuses on elements that impact an organization's economic environment and influence its operations. Interest rates are a critical component within this category as they directly affect borrowing costs, consumer spending, and investment decisions. For businesses, understanding the trends and fluctuations in interest rates helps in forecasting profits and setting strategies accordingly; higher interest rates may lead to reduced consumer spending, while lower rates can stimulate economic growth and increase spending.

The other options pertain to different PESTLE analysis categories. Social classes relate to the social aspect, cultural norms pertain to the socio-cultural influences, and environmental policies are part of the ecological factor in PESTLE. Each of these factors plays a role in the larger analysis, but interest rates specifically belong to the economic category, making it the correct answer in this context.

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