LG 1. Knowledge Comprehension

LO 1.1. Generate knowledge of core concept and theory

When the average level of interest rates increases, why do
consumers purchase less big-ticket item, such as vehicles?

Question

LG 1. Knowledge Comprehension

LO 1.1. Generate knowledge of core concept and theory

When the average level of interest rates increases, why do
consumers purchase less big-ticket item, such as vehicles?

Answer

Big-ticket
item purchases usually involve credit financing

Answer

Big-ticket
item is expensive

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