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.

Question

Jovanny Kelley

Mathematics

22 November, 08:16

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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Adam Doyle · Answer 1

I believe that it would be between A and C but looking at the both of them C doesnt sound exactly right because in the US, acquiring a good credit score is not that hard, so I would go with A if I were you.