Which of the following statements best describes the unintended consequences of usury ceilings?
A) Usury ceilings placed above equilibrium increase the quantity supplied of loans and decrease the quantity demanded of loans. This creates a shortage.
B) Usury ceilings cause the demand for loans to increase. Since supply does not increase, a shortage emerges.
C) Usury ceilings placed below the equilibrium interest rate cause the quantity demanded of loans to be greater than the quantity supplied. As a result, there is a shortage.
D) Usury ceilings cause the demand curve to shift rightward and the supply curve to shift leftward. As a result, the market no longer clears and a shortage of loans develops.
Correct Answer:
Verified
Q1: If left to decide the level of
Q2: Which of the following changes result in
Q3: _ removed many of the regulations established
Q4: Which of the following was not a
Q5: The Garn-St. Germain Act of 1982
A)authorized money
Q7: The _ sets margin requirements for the
Q8: The Federal Reserve sets _ for the
Q9: The Garn-St. Germain Depository Institutions Act was
Q10: _ greatly expanded the lending powers of
Q11: The _, passed in 1988, is an
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents