In the past two years, the effects of the worldwide economic

In the past two years, the effects of the worldwide economic downturn have been felt in all corners of the economy. For example, data from the Crescent City furniture industry show that sales have decreased 12% compared to two years ago. Yet the banks who provide working capital to the furniture retailers report that, in the first year of the downturn, the proportion of credit they provided to the retailers that was repaid on time dropped sharply, while in the second year it returned to normal levels.
Question
Which one of the following, if true, most helps to explain the change in credit repayment reported?

A)The total dollar amount of the loans decreased slightly between the first year and the second.
B)New restrictions on the banking industry instituted since the economic downturn began have limited the number of loans banks can make to troubled borrowers.
C)The largest furniture chain in Crescent City slashed prices in the second year in order to stimulate sales.
D)Almost all of the most financially troubled furniture retailers went out of business at the end of the first year of the economic downturn.
E)Between the first and second years of the recession, wholesalers were forced to significantly raise the prices they charged to retailers.

Source: Grockit