Practicing Success
How do low longer-term interest rates impact construction companies and automobile manufacturers? |
Result in increased spending by consumers Decrease demand for products and services Have no impact on consumer behavior Increase costs for businesses |
Result in increased spending by consumers |
Short and long-term interest rates significantly affect the demand for product and services. For example, in case of construction companies and automobile manufacturers, low longer-term rates are beneficial because they result in increased spending by consumers for buying homes and cars on borrowed money. |