Even with a lower rate of interest, demand for credit declines during:

CA Foundation · Business Economics · MTP · September 2026
Even with a lower rate of interest, demand for credit declines during:
(A) A. Contraction Phase
(B) B. Expansion Phase
(C) C. Peak
(D) D. Recovery

Suggested Answer and Working Notes:

Correct Answer: Option (A)

A. Contraction Phase

Topics: Business Cycles

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