Low interest rates in 2003-2004:
A) made it more difficult to borrow.
B) lowered real growth.
C) increased demand for homes.
D) decreased demand for homes.

Question

Quizplus · Accepted Answer

Low interest rates typically make borrowing money more affordable, which in turn tends to increase demand for goods and services that require financing, such as homes. Therefore, low interest rates in 2003-2004 likely increased demand for homes, rather than decreasing it.

Low Interest Rates in 2003-2004