assume that as the economy booms, the demand for business and consumer loans rises significantly while the supply of funds and loans remains constant. As a result, the market interest rate for business and consumer loans rises to 20% per year. The government implements a ceiling on interest rates of 15% ab year and as a result options: 1.a greater number of business and consumer loans are made at a lower interest rate than previously 2. the quantity demanded of business and consumer loans rises, while the quantity supplied falls and a surplus occurs 3. the demand of business and consumer loans rises, while the supply falls and a shortage occurs 4. the quantity demanded of business and consumer loans rised, while the quantity supplied falls and a shortage occurs
assume that as the economy booms, the
options:
1.a greater number of business and consumer loans are made at a lower interest rate than previously
2. the quantity demanded of business and consumer loans rises, while the quantity supplied falls and a surplus occurs
3. the demand of business and consumer loans rises, while the supply falls and a shortage occurs
4. the quantity demanded of business and consumer loans rised, while the quantity supplied falls and a shortage occurs
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
