During the credit crisis, U.S. interest rates were extremely low, which enabled businesses to borrow at a low cost. Holding other factors constant, this should result in a higher number of feasible projects, which should encourage businesses to borrow more money and expand. Yet many businesses that had access to loanable funds were unwilling to borrow during the credit crisis. What other factor changed during this period that more than offset the potentially favorable effect of the low interest rates on project feasibility, thereby discouraging businesses from expanding? I. The amount of loanable funds was limited as the number of financial institutions, willing to provide loans at low interest rates, decreased. II. The demand for firms' goods and services was limited because households could not increase their consumption due to the crisis. III. High inflationary expectations prevented firms from borrowing funds despite the low-interest rates