In 2021, an article in the Wall Street Journal on the housing market stated, "U.S. home sales in 2020 surged to their highest level in 14 years, fueled by ultralow interest rates." Source: Harriet Torry, "U.S. Existing-Home Sales Reach Highest Level in 14 Years," Wall Street Journal, January 22, 2021. a. Why do low interest rates increase the quantity of homes that households demand? A. When interest rates are low, the supply of housing increases. B. Lower interest rates induce consumers to spend less money save more for future home purchases. C. The lower the interest rate, the less expensive it is for households to borrow money. D. The lower the interest rate, the lower the price that sellers are willing to accept for their home. Part 2 b. In which component of aggregate expenditure does the Bureau of Economic Analysis include purchases of new houses? A. Net exports. B. Government purchases. C. Planned investment. D. Consumption