4
QuizMultiple Choice

Interest Rates

Question 4 • 2025-2026 GSP Mathematical Reasoning for Decision Making

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.

Answer
A
A
B
B
C
C
D
D
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