Employment in housing-related industries increases and decreases based on changes in interest rates.

Question

Quizplus · Accepted Answer

When interest rates decrease, borrowing becomes cheaper, leading to an increase in home buying and refinancing activities. This boosts demand for housing-related industries such as construction, real estate, and home improvement. Conversely, when interest rates increase, borrowing costs rise, reducing demand in these sectors and leading to a decrease in employment within housing-related industries.

Employment in Housing-Related Industries Increases and Decreases Based on Changes