If the equilibrium rate of interest would be 10 percent, but the usury law sets 8 percent,
a. the quantity of funds supplied would be greater than the quantity demanded.
b. economic efficiency would be promoted.
c. some applicants for loans would likely be turned down.
d. lenders would be able to fund fully all requests for loans.
c
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Indifference curves are downward sloping because
A) when some of one good is taken away the consumer must be compensated with more of the other. B) higher prices mean less quantity demanded. C) higher indifference curves mean higher utility. D) Both A and B.
The government announces a tax increase on workers' wages to take effect in the future. What happens to current employment and the real wage rate?
A) Both employment and the real wage rate would increase. B) Both employment and the real wage rate would decrease. C) Employment would increase and the real wage would decrease. D) Employment would decrease and the real wage would increase.
With reference to the graph above, if the intended aim of the price ceiling set at $6 was a net increase in the well-being of consumers:
A. then the policy was ineffective since consumers gained in surplus overall. B. then the policy was effective since consumers lost surplus overall. C. then the policy was ineffective since consumers lost surplus overall. D. then the policy was effective since consumers gained in surplus overall.
According to public choice theory, low voter turnouts are the result of voters
A) being apathetic. B) being uninformed. C) being lazy. D) disliking the candidates. E) calculating their costs and benefits of voting.