Which of the following markets is likely to be the MOST sensitive to changes in long-term interest rates?
A)college tuition
B)consumer staples
C)housing
D)airline travel
E)textbook

Question

Quizplus · Accepted Answer

Housing is likely to be the most sensitive to changes in long-term interest rates, as the cost of borrowing for a mortgage is directly impacted by these rates. When interest rates rise, mortgage payments become more expensive, making housing less affordable for buyers. Conversely, when interest rates fall, mortgage payments become cheaper and housing becomes more affordable, leading to an increase in demand.

Which of the Following Markets Is Likely to Be the MOST