Refer to the Graph of the Supply and Demand for Loanable

question 118

Multiple Choice

Refer to the graph of the supply and demand for loanable funds. A limit of 10 percent on the interest rate that banks can charge for loans will

• A)have an equal effect on borrowers and lenders.
• B)save borrowers 5 percent and cost lenders 5 percent on the amount loaned.
• C)give lenders a premium of 5 percent and cost borrowers 5 percent on the amount loaned.
• D)save borrowers 10 percent and cost lenders 10 percent on the amount loaned.

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Definitions:

CD-Rom Drives

Devices used to read data stored on CD-ROMs, which were widely utilized for software, media, and data storage in the late 20th and early 21st centuries.

Tariffs

Taxes imposed on imported goods and services to increase their price, primarily used to restrict trade by increasing the cost of imported goods and services.

United States

A country located in North America, consisting of 50 states and a federal district, known for its strong economy and diverse population.

Price

The expense amount anticipated, necessary, or surrendered in payment for something.