What happens to interest rates when there is a high demand for car loans?(1 point)

Responses

Interest rates decrease to encourage borrowing.
Interest rates decrease to encourage borrowing.

Interest rates remain the same regardless of demand.
Interest rates remain the same regardless of demand.

Interest rates may increase due to higher demand.
Interest rates may increase due to higher demand.

Interest rates are only affected by government policies.

1 answer

Interest rates may increase due to higher demand.