What is an interest sensitive good?
Submitted by: Administrator
Things like housing and autos tend to be affected by changes in interest rates because financing is typically required to make such purchases. If financing becomes more expensive due to an increase in interest rates, sales in these goods tend to be effected in a negative way. On the other hand, when interest rates are low sales are usually positively impacted for interest rate sensitive goods.
Submitted by: Administrator
Read Online Economics Job Interview Questions And Answers
