Question

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

Answer 1

Answer:

C

Step-by-step explanation:

took test

Answer 2

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

The interest rates on loans tend to be lower in a weak economy than in a strong one because in a weak economy there is less demand for credit so the rates are lesser. In a stronger economy, the credit market demand is higher so as the demand increases the rate also increases.