Usury laws result in banks making less credit available to lower-income households because
A) higher-income households will pay a higher interest rate than lower-income households.
B) loans made to higher-income households have no risk.
C) loans to lower-income households are riskier than loans to higher-income households.
D) the regulated interest rate does not adequately compensate the bank for the risk of the loan to a lower-income household.
D
You might also like to view...
Median voters in settings where the policy space is single dimensional and everyone has single peaked preferences are Arrow Dictators.
Answer the following statement true (T) or false (F)
Which of the following is the best example of a fixed cost for a business?
a. the insurance payment for the protection of a building owned by the firm b. shipping charges for the delivery of products c. managerial salaries paid d. the total of medical insurance premiums on the firm's employees
A country has output of $900 billion, consumption of $600 billion, government expenditures of $150 billion and investment of $120 billion. What is its supply of loanable funds?
a. $30 billion b. $90 billion c. $120 billion d. $150 billion
Marginal product is
A. the output of the least skilled worker. B. a worker's output multiplied by the price at which each unit can be sold. C. the amount any given worker contributes to the firm's total revenue. D. the amount an additional worker adds to the firm's total output.