Write two paragraphs about how interest rates affect people’s purchasing decisions. Underline the topic sentence in each paragraph.

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Interest rates have a significant impact on people’s purchasing decisions. The topic sentence of the first paragraph is "Interest rates influence the affordability of loans." When interest rates are low, it becomes more affordable for individuals to take out loans, whether for purchasing a home, buying a car, or funding a major expense. Lower interest rates mean lower monthly payments, making it more feasible for people to make significant purchases. This increased affordability encourages individuals to make big-ticket purchases that they may have otherwise delayed or avoided. On the other hand, when interest rates are high, borrowing money becomes more expensive, leading to higher monthly payments. This can deter individuals from making big purchases as they may not be able to afford the higher interest payments.

The topic sentence of the second paragraph is "Interest rates affect the return on savings." Higher interest rates mean that individuals can earn more money from their savings accounts, certificates of deposit, or other investments. This can incentivize people to save more money as they see a higher return on their investments. On the flip side, when interest rates are low, the return on savings is also low, which can discourage people from saving and instead encourage them to spend. Lower interest rates may make individuals less motivated to save and more motivated to invest their money into purchasing goods and services, thus driving up consumer spending. Therefore, interest rates play a crucial role in determining people's spending and saving patterns.