In the Netherlands in 2018, there were $$\(1.3\)$$ bicycles per person and the world's largest underground bicycle parking area was built in the capital city. Land is scarce in city centres, where most cycling takes place. Demand for bikes in the Netherlands is price-inelastic. Only a few people in the Netherlands borrow money to buy bikes. The government encourages cycling by spending on both bike parking areas and leisure cycle parks. Analyse why households in one country may borrow more than households in another country.

Coherent analysis which might include:
A lower interest rate (1) reduces the cost of borrowing (1).
Financial institutions may have more funds available to lend
in one country (1) making it easier to borrow (1).
Households / financial institutions may be more confident that
they can repay (1) employment / income may be rising in one
country (1).
Borrowing may be more socially acceptable in one country (1)
people may not mind getting into debt (1).
Younger households (1) may be less worried about debt (1).
Rise in unemployment / fall in GDP / recession in one country
/ lower income (1) may result in borrowing to buy basic
necessities (1).
Inflation (1) borrowers will gain if the rate is higher than the
rate of interest (1).