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What is an interest sensitive good?

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2007-05-13 18:23:31
2007-05-13 18:23:31

These are things like housing and autos that tend to be effected by changes in interest rates due to the fact that 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.

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