When interest rates rise, the debt burden for farmers
A) Rises and the value of their land falls.
B) Falls and the value of their land falls.
C) Rises and the value of their land rises.
D) Falls and the value of their land rises.

Question

Quizplus · Accepted Answer

When interest rates rise, the cost of borrowing for farmers increases. This leads to a rise in their debt burden, making it more difficult for them to make loan payments. As a result, the value of their land may fall as they struggle to keep up with their debts.

When Interest Rates Rise, the Debt Burden for Farmers