Over the past year, there has been a sharp recession in the country of Boomington, which has seen sales in its retail sector decrease by nearly 24 percent as compared to the previous year. Lenders have reported, however, that small business owners missed loan payments 53 percent less often in the fourth quarter of the year than did small business owners in the third quarter.

Which of the following, if true, best explains the difference in the percent of missed loan payments by small business owners between the third and fourth quarters of the recession year?


The total of number of loans taken out by small business owners increased between the third and fourth quarter of the recession year.

Between the third and fourth quarter of the recession year, small business owners in Boomington saw some of their costs, such as labor and overhead, increase.

Small business owners in Boomington tried to increase sales in the third quarter of the recession year by marking down many items in their inventories.

Nearly all of the small business owners in Boomington who were struggling to make loan payments during the recession went out of business during the second and third quarters of the recession year.

Certain parts of the retail sector, such as gas stations and grocery stores, which are somewhat recession-proof, did not see any decrease in their sales during the recession year.


OA: after some discussion