Which of the Following Describes the Relationship Between Interest Rates

question 177

Multiple Choice

Which of the following describes the relationship between interest rates and interest-sensitive goods, such as housing?

• A) As interest rates decline, the demand for interest-sensitive goods increases.
• B) As interest rates decline, the demand for interest-sensitive goods decreases.
• C) As interest rates increase, the demand for interest-sensitive goods increases, driving prices upward.
• D) As interest rates increase, the demand for interest-sensitive goods decreases, driving prices upward.

---

Definitions:

Social Conflict

It is a theory that sees society as an arena of inequality that generates conflict and social change.

Folkways

The general standards of behavior adhered to by a group.

Mores

Strict norms that control moral and ethical behavior.

Sanctions

Penalties or rewards for conduct concerning a social norm.