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

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.

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Step-by-step explanation:

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