A young couple is borrowing $100,000 to buy their fi rst home. An older couple is living off the interest income from the $100,000 in fi nancial assets they own. How does the interest rate affect each...

A young couple is borrowing $100,000 to buy their fi rst home. An older couple is living off the interest income from the $100,000 in fi nancial assets they own. How does the interest rate affect each couple? If the interest rate increases, could that change the behavior of either couple? How and why?