If interest rates rise,this will
A) lower the cost of buying new homes and fewer new homes will be purchased thereby reducing consumption expenditure.
B) lower the cost of buying new homes and fewer new homes will be purchased thereby reducing investment expenditure.
C) raise the cost of buying new homes, and fewer new homes will be purchased thereby reducing investment expenditure.
D) raise the cost of buying new homes, and more new homes will be purchased thereby increasing investment expenditure.
Correct Answer:
Verified
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