The term "credit crunch" refers to a period in which the interest rate on credit is so high that firms cannot afford to borrow money.

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The term "credit crunch" refers to a period in which credit is difficult to obtain, regardless of the interest rate. This can be due to factors such as a decrease in available credit, a decrease in lender confidence, or an increase in risk perception by lenders. While high interest rates can contribute to a credit crunch, they are not the defining characteristic of it.

The Term "Credit Crunch" Refers to a Period in Which