If the Equilibrium Rate of Interest Would Be 10 Percent

question 113

Multiple Choice

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.

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Definitions:

Industrial Workers Of The World

An international labor union founded in 1905, known for its radical approach to workers' rights and socialism.

United Mine Workers

A labor union that represents coal miners in the United States and Canada, focusing on improving working conditions and wages.

Eugene Debs

An American socialist, political activist, trade unionist, one of the founding members of the Industrial Workers of the World, and five times the candidate of the Socialist Party of America for President of the United States.

Pullman Strike

A nationwide railroad strike in the United States in 1894, which severely disrupted rail traffic in the Midwest and led to intervention by federal troops.