Interest rates are generally ________ at the peak of the business cycle and beginning the retreat into recession.

At the peak of the business cycle, interest rates are typically high as the economy is performing strongly, leading to increased demand for borrowing and investment. As the cycle begins to retreat into a recession, interest rates usually start to fall. This is a response from monetary policy where the central banks may lower interest rates to stimulate the economy and encourage borrowing and spending in order to counteract the slowdown.

Therefore, it is accurate to state that at the peak, interest rates are high due to robust economic activity, and as signs of recession arise, they begin to fall in an attempt to boost economic growth. This understanding reflects the relationship between interest rates and the business cycle, emphasizing the role of monetary policy in managing economic fluctuations.