Interest rate increases have a _____ impact on the residential home construction industry and a _____ effect on industries that produce consumer necessities such as prescription drugs or basic grocery items.
A) positive; neutral
B) negative; neutral
C) negative; positive
D) positive; negative

Question

Quizplus · Accepted Answer

Interest rate increases typically have a negative impact on the residential home construction industry because higher rates make borrowing more expensive, which can reduce demand for new homes. However, industries that produce consumer necessities like prescription drugs or basic grocery items are generally less affected by interest rate changes, hence the neutral effect.

Interest Rate Increases Have a _____ Impact on the Residential