Question: The demand for automobiles is often described as highly cyclical, and very sensitive to automobile prices and interest rates. Given these characteristics, describe the effect

The demand for automobiles is often described as highly cyclical, and very sensitive to automobile prices and interest rates. Given these characteristics, describe the effect of each of the following.

A. A decrease in auto prices

B. A fall in interest rates

C. A rise in interest rates

D. A severe economic recession

E. A robust economic expansion

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