Looking for guidance. Below are two paragraphs I wrote concerning how interest rates affect our purchasing. The first sentence in each I have identified as my topic sentence. I question if the major points are stated clearly; are supported by specific details, examples, or analysis; and are organized logically.
How interest rates affect our purchasing decisions.
High interest rates create a disincentive to spend money. Because consumers know they will pay more money over the course of the loan, they may choose to postpone buying expensive items such as cars and homes. Often consumers choose to save their money in an interest-bearing account instead because they are receiving a higher return. Higher interest rates cause deflation, which means the purchasing power of the dollar is stronger. When interest rates are high, there is a much greater supply and fewer buyers causing prices to drop or maintain.
Low interest rates affect purchasing habits as well. When interest rates are low, it is more enticing for businesses and consumers to take out loans to finance large purchases. When consumers and businesses have easier access to credit, they spend more money. In most cases, low mortgage rates equate to more home purchases, and low credit card rates cause people to spend more on credit. However, low interest rates generally mean higher prices because there are more buyers and limited supply.
Thanks in advance for your thoughts.
You have a clear topic sentence in each paragraph. There are 3 examples of support for that topic sentence and a good concluding sentence. You have done exactly what you wanted to do.
Thanks
Here's an analysis of your writing:
Paragraph 1:
- The topic sentence is clear: "High interest rates create a disincentive to spend money."
- The major points are stated clearly: high interest rates lead to postponing expensive purchases, choosing to save money in interest-bearing accounts instead, and high interest rates causing deflation.
- The paragraph is supported by specific details, such as mentioning expensive items like cars and homes, and the idea of saving money in an interest-bearing account for a higher return.
- The analysis of how higher interest rates lead to deflation and its impact on the purchasing power of the dollar is also present.
- The organization is logical, as each point is related to how high interest rates affect purchasing decisions.
Paragraph 2:
- The topic sentence is clear: "Low interest rates affect purchasing habits as well."
- The major points are stated clearly: low interest rates encourage businesses and consumers to take out loans for large purchases, low mortgage rates lead to more home purchases, and low credit card rates lead to increased spending on credit.
- The paragraph is supported by specific details, such as the mention of businesses and consumers having easier access to credit and the impact on mortgage and credit card rates.
- The idea that low interest rates generally mean higher prices due to increased demand is also mentioned.
- The organization is logical, with each point relating to how low interest rates affect purchasing decisions.
Overall, your paragraphs are well-structured and provide clear explanations of how interest rates affect purchasing decisions. They are supported by specific details and organized logically. Great job!