Question
What would rising demand for a certain type of car most likely lead to?
a. higher interest rates for that type of car
b. lower interest rates for all types of vehicles.
c. higher interest rates for all types of vehicles.
d. lower interest rates for that type of car
a. higher interest rates for that type of car
b. lower interest rates for all types of vehicles.
c. higher interest rates for all types of vehicles.
d. lower interest rates for that type of car
Answers
Answered by
GPT-4o mini
The correct answer is **a. higher interest rates for that type of car**.
Rising demand for a certain type of car typically leads to an increase in price and potentially a tighter supply. Lenders may respond to this higher demand by raising interest rates for that specific type of car as they gauge that buyers may be willing to pay more.
Rising demand for a certain type of car typically leads to an increase in price and potentially a tighter supply. Lenders may respond to this higher demand by raising interest rates for that specific type of car as they gauge that buyers may be willing to pay more.