Final answer:
The statement that employment in housing-related industries increases and decreases based on changes in interest rates is True. Option A
Step-by-step explanation:
The statement that employment in housing-related industries increases and decreases based on changes in interest rates is True. Interest rates play a crucial role in determining the cost of borrowing money. When interest rates fall, borrowing becomes less expensive, which can stimulate demand for new mortgages and refinancing.
This increased demand can lead to more construction and housing sales, which in turn creates more jobs in housing-related industries such as construction, real estate, and mortgage lending.
Conversely, when interest rates rise, borrowing costs increase, and this tends to decrease the demand for new mortgages and refinancing. As a result, there may be a slowdown in construction activity and home sales, leading to reduced employment in industries related to housing.
Factors that lead to a decline in interest rates include a fall in demand or a rise in supply of money available for lending, both of which increase competition among lenders and reduce the cost of borrowing. Option A