One of the most responsive components of investment to changes in interest rates are

Question

Quizplus · Accepted Answer

Residential housing is the most responsive component of investment to changes in interest rates. This is because higher interest rates increase the cost of borrowing, making it more expensive for individuals to purchase homes, leading to a decrease in demand for housing and ultimately decreasing investment in the housing market. Conversely, lower interest rates have the opposite effect, increasing demand for housing and promoting investment in the housing market.

One of the Most Responsive Components of Investment to Changes