The notion of interest sensitive consumption would be most readily observed when people buy
A)furniture.
B)food.
C)insurance.
D)health care.

Question

Quizplus · Accepted Answer

Interest rates can affect the cost of borrowing for large purchases such as homes and furniture. As interest rates rise, the cost of financing these purchases increases, potentially causing consumers to delay or decrease spending on such items.

The Notion of Interest Sensitive Consumption Would Be Most Readily