Which statement is true?
A. Usury laws hurt some borrowers, but don't interfere with the price mechanism.
B. Usury laws hurt some borrowers and interfere with the price mechanism.
C. Usury laws interfere with the price mechanism, but don't hurt borrowers.
D. Usury laws neither interfere with the price mechanism, nor hurt borrowers.
B. Usury laws hurt some borrowers and interfere with the price mechanism.
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The authors claim that monopolists will tend to practice stronger conservation of depletable resources than would occur under a perfectly competitive market structure. Why is this true?
A) Monopolists are typically taxed at higher rates than competitive firms, so they will tend to reduce output and revenues in order to minimize their tax expenditures. B) The profit-maximizing decisions of a monopolist tend to generate lower output levels than under perfect competition, so the resource is depleted at a slower rate by the monopolist. C) Common property resource problems do not arise when there is only one seller. D) The lower depletion rate used by monopolists serves as a barrier to entry.
What best describes the US experience with banking from 1785 until the Civil War?
a. There was a national bank for the entire time period. b. The first two national banks were largely foreign owned. c. Only gold was used to back currency. d. Only national banks could print notes.
If the exchange rate between the yen and the dollar changed from 100 yen = $1 to 110 yen = $1, then
a. the dollar depreciated b. U.S. goods will become less expensive to the Japanese c. the dollar appreciated d. Japanese goods will become more expensive to U.S. citizens e. the demand for dollars will increase
Which of the following changes in the price index produces the greatest rate of inflation: 100 to 110, 150 to 165, or 180 to 198?
a. 100 to 110 b. 150 to 165 c. 180 to 198 d. All of these changes produce the same rate of inflation.