During periods of ____ economic growth, loan demand tends to be ____, allowing banks to provide ____ loans.

Question

Quizplus · Accepted Answer

During strong economic growth, people tend to have more confidence in their ability to repay loans, and businesses see opportunities for expansion. This leads to higher loan demand, and banks are more willing to lend as they see less risk of default. Therefore, banks can provide more loans during periods of strong economic growth.

During Periods of ____ Economic Growth, Loan Demand Tends to Be