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Why does diversification reduce risk?
Price Floor
A government or regulatory imposed minimum price above the equilibrium price, preventing prices from dropping too low.
Usury Laws
Regulations designed to protect consumers by capping the interest rate that lenders can charge on credit.
Loanable Funds
The supply of money that savers have made available to borrowers.
Usury Laws
Regulations governing the maximum interest rate that can be charged on loans, intended to protect consumers from excessively high rates.
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