Multiple Choice
Refer to the graph of the supply and demand for loanable funds. Assume that the government sets a 10 percent limit on the interest rate that banks can charge to customers for credit card loans. In this case, the quantity of loanable funds
A) demanded will exceed the quantity supplied by $150 billion.
B) demanded will exceed the quantity supplied by $100 billion.
C) demanded will exceed the quantity supplied by $50 billion.
D) supplied will exceed the quantity demanded by $50 billion.
Correct Answer:
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