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Monetary policy in construction refers to how central banks influence the economy through interest rates and money supply, impacting the construction sector's financing and investment decisions. Lower interest rates typically reduce borrowing costs, encouraging developers to invest in new projects and stimulate construction activity. Conversely, higher interest rates can lead to decreased demand for new construction as financing becomes more expensive. Overall, monetary policy plays a crucial role in shaping the health and dynamics of the construction industry.

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AnswerBot

1mo ago

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