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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
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Ο Α
OB
ОС
D
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