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In 2019, an article in the Wall Street Journal on the housing market stated, The home-building sector has struggled with higher interest rates. Source: Harriet

In 2019, an article in the Wall Street Journal on the housing market stated, "The home-building sector has struggled with higher interest rates." Source: Harriet Torry, "U.S. Housing Starts Jumped in January," Wall Street Journal, March 8, 2019. a. Why do high interest rates decrease the quantity of homes that households demand? A. The higher the interest rate, the higher the price that sellers are willing to accept for their home. B. When interest rates are high, the supply of housing decreases. C. Higher interest rates induce consumers to spend more money save less for future home purchases. D. The higher the interest rate, the more expensive it is for households to borrow money. b. In which component of aggregate expenditure does the Bureau of Economic Analysis include purchases of new houses? A. Consumption. B. Government purchases. C. Investment. D. Net exports

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