A ________ in long-term interest rates ________ households' demand for durable goods.
A) fall; decreases
B) fall; increases
C) rise; increases
D) rise; does not affect

Question

Quizplus · Accepted Answer

When long-term interest rates fall, it becomes cheaper for households to finance purchases of durable goods like big-ticket items such as a house, car, or major household appliances. As a result, households tend to increase their demand for durable goods when long-term interest rates fall.

A ________ in Long-Term Interest Rates ________ Households' Demand for Durable

A in Long-Term Interest Rates Households' Demand for Durable