Business, 28.10.2019 19:31 corianrigby97

Why do interest rates follow the business cycle? during a recession, the demand for goods and services is lower, businesses borrow more, and as a result the economy slows down and the interest rates decline. during an expansion, there is downward pressure on interest rates as businesses begin to grow and borrow more money. interest rates tend rise during economic expansion and decline during recessions. typically, the fed tightens credit to stimulate the economy, which puts further downward pressure on interest rates.

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Why do interest rates follow the business cycle? during a recession, the demand for goods and servic...

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