Households tend to be interest-inelastic borrowers.

Name: Households tend to be interest-inelastic borrowers.
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This is because households often have urgent or necessary expenses, such as medical bills or home repairs, that require borrowing regardless of the interest rate. Additionally, households generally have less access to credit than businesses or governments, which further limits their ability to shop around for lower interest rates.

Households Tend to Be Interest-Inelastic Borrowers