Question

Why do intrest rates on loans tend to be lower in a week economy than in a strong one?

Answer 1

Interest rate tend to be lower in weak economy than in strong economy to encourage people to borrow money to invest in businesses, the lower the interest rate, the more willing people are to borrow money to make big purchases and this will make economic growth tend to be faster.

Moreso a weak economy tends to have low inflation, so interest rates drop to match.