Mathematics, 18.03.2021 01:00 tyrasimpson4787
Why do interest rates on loans tend to be higher in a strong economy than in a weak one?
a. Credit markets increase in a strong economy, and with increased demand come
increased prices.
b A strong economy encourages borrowers to take out very long-term loans, which have
higher interest rates.
Credit is plentiful in a strong economy, so it is harder to build up the good credit rating
necessary for a low interest rate
d. People in a strong economy have more money, so they can afford more expensive loans.
Answers: 3
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Why do interest rates on loans tend to be higher in a strong economy than in a weak one?
a. Credit...
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