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% a year and as a result... Group of answer choices The quantity demanded of business and consumer loans rises, while the quantity supplied falls and a surplus occurs A greater number of business and consumer loans are made at a lower interest rate than previously. The demand of business and consumer loans rises, while the supply falls and a shortage occurs The quantity demanded of business and consumer loans rises, while the quantity supplied falls and a shortage occurs
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% a year and as a result... Group of answer choices The quantity demanded of business and consumer loans rises, while the quantity supplied falls and a surplus occurs A greater number of business and consumer loans are made at a lower interest rate than previously. The demand of business and consumer loans rises, while the supply falls and a shortage occurs The quantity demanded of business and consumer loans rises, while the quantity supplied falls and a shortage occurs
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Question
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% a year and as a result...
Group of answer choices
The quantity demanded of business and consumer loans rises, while the quantity supplied falls and a surplus occurs
A greater number of business and consumer loans are made at a lower interest rate than previously.
The demand of business and consumer loans rises, while the supply falls and a shortage occurs
The quantity demanded of business and consumer loans rises, while the quantity supplied falls and a shortage occurs
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