Policies focused on lowering interest rates to allow people to buy homes would be considered
A)demand side policies.
B)supply side policies.
C)fiscal policies.
D)demand side and supply side policies.

Question

Quizplus · Accepted Answer

Policies focused on lowering interest rates to allow people to buy homes are demand side policies. This is because they seek to increase the demand for housing by making borrowing cheaper and more accessible to people, thereby incentivizing and increasing their ability to buy homes. Supply side policies, on the other hand, focus on increasing the supply of goods and services, which may indirectly affect the housing market, but are not specifically targeted at the demand for housing. Fiscal policies, meanwhile, involve government spending and taxation, and may include policies that affect the housing market indirectly.

Policies Focused on Lowering Interest Rates to Allow People to Buy