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How do interest rates affect different economic sectors?

Posted by James on August 14, 2009 in Home Loans |
Joakim M


It’s not made clear as to what sort of economic sectors the question refers to.

I know this much at least:

-Increasing interest rates
Higher mortgage costs
Lower CPI
Prevents inflation
Slows the economy (decreasing GDP)
Higher risk of recession

-Decreasing interest rates
Lower mortgage costs
Higher CPI
Steers economy towards inflation
Speeds up the economy (increasing GDP)
Lower risk of recession

what i don’t know is how this affects 2 different sectors of the economy.
Are different sectors affected differently at all?

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