Industries that include durable goods manufacturers generally are more sensitive to interest rate changes than industries that include staple goods firms.

Question

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Durable goods, which are long-lasting products like cars and appliances, often require financing and are not essential to daily life. As a result, changes in interest rates can greatly impact consumer demand for these goods, making it a more sensitive industry to interest rate changes compared to industries that produce staple goods, such as food and household products, which are essential and less impacted by interest rate fluctuations.

Industries That Include Durable Goods Manufacturers Generally Are More Sensitive