Interest-Rate Increases Have a __________ Impact on the Residential Home

question 53

Multiple Choice

Interest-rate increases have a __________ impact on the residential home construction industry and a __________ effect on industries that produce consumer necessities such as prescription drugs or basic grocery items.

• A)positive; negligible
• B)negative; negligible
• C)negative; positive
• D)positive; negative

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Definitions:

Supply Curve

A graphical representation showing the relationship between the price of a good and the quantity of the good that suppliers are willing to offer for sale.

Production Possibility Frontier

A graph that shows the maximum possible output combinations of two goods or services an economy can achieve when using all available resources efficiently.

Demand Curve

A graphical representation of the relationship between the price of a good or service and the quantity demanded for a given period of time.

Quantity Demanded

The overall quantity of a good or service buyers intend and can afford to acquire at an established price.