write two paragraphs how interest rates affect our purchasing decisions underlining the topic in each paragraph

Paragraph 1: Interest rates play a significant role in influencing our purchasing decisions. When interest rates are low, borrowing becomes cheaper, making it more enticing for individuals to take out loans for large purchases such as cars or houses. Lower interest rates mean lower monthly payments, which can make these purchases more affordable and accessible to individuals. As a result, people are more likely to make these big-ticket purchases, which stimulates economic growth and consumer spending. Additionally, low interest rates encourage consumers to borrow and spend, rather than saving, as the opportunity cost of saving (the interest earned on savings) is reduced. This can lead to increased demand and can have a positive impact on businesses and industries.

Paragraph 2: On the other hand, high interest rates can have a dampening effect on our purchasing decisions. When interest rates are high, borrowing becomes more expensive, which can discourage individuals from taking out loans and making larger purchases. Higher interest rates mean higher monthly payments, making these purchases less affordable and less desirable. As a result, individuals may delay or even cancel their plans to make major purchases, leading to a decrease in consumer spending. Moreover, higher interest rates can incentivize individuals to save rather than spend, as the opportunity cost of saving becomes more attractive. This can result in a decrease in demand and can negatively impact businesses and industries that rely on consumer spending.