Which of the following purchases is most likely to be affected by changes in interest rates?
A)Alcohol
B)Food
C)House
D)Cosmetics

Question

Quizplus · Accepted Answer

Changes in interest rates have a significant impact on the cost of borrowing money, which in turn affects the affordability of houses. Higher interest rates typically mean higher mortgage rates and higher costs of borrowing, making it more difficult for people to buy houses. Therefore, the purchase of a house is most likely to be affected by changes in interest rates.

Which of the Following Purchases Is Most Likely to Be