Mathematics, 20.06.2020 23:57 stranger123
Why do interest rates on loans tend to be lower in a weak economy than in a strong one?
a. A weak economy tends to have low inflation, so interest rates drop to match.
b. Borrowers in a weak economy are less likely to default on their loans, so interest rates are
correspondingly low.
c. In a weak economy there is less demand for credit, so the price drops.
d. The strength or weakness of an economy is determined by interest rates; low interest rates actually
cause a weak economy
Please select the best answer from the choices provided
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Why do interest rates on loans tend to be lower in a weak economy than in a strong one?
a. A weak e...
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