Why do interest rates on loans tend to be higher in a strong economy than in a weak one?
a....
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Mathematics, 29.01.2020 08:58 naidaisha18
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.
c. 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.
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