How do changes in interest rates typically affect consumer spending in an economy?

Changes in interest rates can have a big impact on how much people spend money. When interest rates are low, borrowing money becomes cheaper, which encourages consumers to take out loans for things like cars or houses. For example, if someone can get a lower interest rate on a mortgage, they might decide to buy a new home instead of waiting. On the other hand, when interest rates rise, borrowing costs more, so people are less likely to spend money on big purchases. This means that higher interest rates can slow down consumer spending, which can affect the overall economy.