Which of the Following Describes the Relationship Between Interest Rates

Multiple Choice

Which of the following describes the relationship between interest rates and interest-sensitive goods, such as housing?

A) As interest rates decline, the demand for interest-sensitive goods increases.
B) As interest rates decline, the demand for interest-sensitive goods decreases.
C) As interest rates increase, the demand for interest-sensitive goods increases, driving prices upward.
D) As interest rates increase, the demand for interest-sensitive goods decreases, driving prices upward.