Increases in loan making lead to _________spending, which causes output to rise when the economy is ________.
A) increased; at full employment
B) increased; in a recession
C) decreased; at full employment
D) decreased; in a recession

Question

Quizplus · Accepted Answer

Increases in loan making typically lead to increased spending, especially when the economy is in a recession. This is because more loans mean more money is available for businesses and consumers to spend, which can help stimulate economic activity and output during downturns.

Increases in Loan Making Lead to _________Spending, Which Causes Output