(06.04 MC)
Which of the following statements most accurately describes an economy in which banks are not making loans?

A) Cities no longer have uncontrolled growth, and communities are better off financially.
B) Individuals can no longer buy new homes, but the economy in unchanged on the whole.
C) Businesses are less able to grow and expand, and the economy slows down.
D) State and local governments would fail, and all business payrolls would be frozen immediately.