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.