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2 years ago

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

Mathematics

2 answers:

BartSMP [9]2 years ago

8 0

the answer is A.

Credit markets increase in a strong economy, and with increased demand come increased prices.

julia-pushkina [17]2 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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3 years ago

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2 years ago

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Aleonysh [2.5K]

Answer:

Step-by-step explanation:

3x +2y = 13 -----------------(i)

x + 2y = 7 ----------------(ii)

Multiply the equation (ii) by (-1) and then add.

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