During an economic expansion, we would expect:
A) interest rates to increase.
B) interest rates to decrease.
C) interest rates to remain the same.
D) the cost of money to decrease.

Question

Quizplus · Accepted Answer

During an economic expansion, demand for borrowing typically increases as businesses seek to expand and consumers increase spending. This higher demand for loans can lead to higher interest rates as lenders can charge more due to the increased demand for their funds.

During an Economic Expansion, We Would Expect