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V125BC [204]
3 years ago
6

Why do interest rates on loans tend to be higher in a strong economy than in a weak one?

Mathematics
2 answers:
BartSMP [9]3 years ago
8 0

the answer is A.

 <em>Credit markets increase in a strong economy, and with increased demand come increased prices.</em>

julia-pushkina [17]3 years ago
3 0

A strong economy can be defined as an economy which has a strong industrial base, good shares prices, vast industrialization, high GDP etc.

A strong economy has high credit rates because when the demand is high, the prices are high. When the demand is less, the prices are less.

So, option A: credit markets increase in a strong economy, and with increased demand come increased prices. - is the correct answer.

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