Homework Help is Here – Start Your Trial Now!
Business
Economics
Economists would predict that legal ceilings on the rate of interest (i.e., a price control) that may be charged to individuals (so called "usury laws"): a. help assure that loans are allocated according to need rather than ability to pay. b. make it easier for people with poor credit ratings to obtain loans. C. reduce the probability that firms will obtain scarce credit by bidding funds away from consumers. d. are unlikely to do any of the above. 7.

Economists would predict that legal ceilings on the rate of interest (i.e., a price control) that may be charged to individuals (so called "usury laws"): a. help assure that loans are allocated according to need rather than ability to pay. b. make it easier for people with poor credit ratings to obtain loans. C. reduce the probability that firms will obtain scarce credit by bidding funds away from consumers. d. are unlikely to do any of the above. 7.

ENGR.ECONOMIC ANALYSIS
ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
See similar textbooks
icon
Related questions
Question

Question 7

**Text Transcription for Educational Website** --- **6.** Consider a government intervention in the form of a price ceiling at a time when the vacancy rate for housing is extremely low. Which of the following is most likely to occur? - a. No change in rents, since controls are usually set where supply and demand curves intersect. - b. A decrease in rents, followed by a decrease in the number of housing units supplied. - c. An increase in rents, followed by an increase in the number of housing units supplied. - d. An increase in the demand for housing, followed by a decrease in the housing units supplied. **7.** Economists would predict that legal ceilings on the rate of interest (i.e., a price control) that may be charged to individuals (so-called "usury laws"): - a. help assure that loans are allocated according to need rather than ability to pay. - b. make it easier for people with poor credit ratings to obtain loans. - c. reduce the probability that firms will obtain scarce credit by bidding funds away from consumers. - d. are unlikely to do any of the above. **8.** *Latin American Populism and the economy of one of our neighbors to the south: Argentina.* Cristina Kirchner, the former President of Argentina, imposed government control over many areas of --- No graphs or diagrams are present in the image.
Transcribed Image Text:**Text Transcription for Educational Website** --- **6.** Consider a government intervention in the form of a price ceiling at a time when the vacancy rate for housing is extremely low. Which of the following is most likely to occur? - a. No change in rents, since controls are usually set where supply and demand curves intersect. - b. A decrease in rents, followed by a decrease in the number of housing units supplied. - c. An increase in rents, followed by an increase in the number of housing units supplied. - d. An increase in the demand for housing, followed by a decrease in the housing units supplied. **7.** Economists would predict that legal ceilings on the rate of interest (i.e., a price control) that may be charged to individuals (so-called "usury laws"): - a. help assure that loans are allocated according to need rather than ability to pay. - b. make it easier for people with poor credit ratings to obtain loans. - c. reduce the probability that firms will obtain scarce credit by bidding funds away from consumers. - d. are unlikely to do any of the above. **8.** *Latin American Populism and the economy of one of our neighbors to the south: Argentina.* Cristina Kirchner, the former President of Argentina, imposed government control over many areas of --- No graphs or diagrams are present in the image.
Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 2 steps

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Knowledge Booster
Arrow's Impossibility Theorem
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.
Recommended textbooks for you
ENGR.ECONOMIC ANALYSIS
ENGR.ECONOMIC ANALYSIS
Economics
ISBN:
9780190931919
Author:
NEWNAN
Publisher:
Oxford University Press
Principles of Economics (12th Edition)
Principles of Economics (12th Edition)
Economics
ISBN:
9780134078779
Author:
Karl E. Case, Ray C. Fair, Sharon E. Oster
Publisher:
PEARSON
Engineering Economy (17th Edition)
Engineering Economy (17th Edition)
Economics
ISBN:
9780134870069
Author:
William G. Sullivan, Elin M. Wicks, C. Patrick Koelling
Publisher:
PEARSON
Principles of Economics (MindTap Course List)
Principles of Economics (MindTap Course List)
Economics
ISBN:
9781305585126
Author:
N. Gregory Mankiw
Publisher:
Cengage Learning
Managerial Economics: A Problem Solving Approach
Managerial Economics: A Problem Solving Approach
Economics
ISBN:
9781337106665
Author:
Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
Publisher:
Cengage Learning
Managerial Economics & Business Strategy (Mcgraw-…
Managerial Economics & Business Strategy (Mcgraw-…
Economics
ISBN:
9781259290619
Author:
Michael Baye, Jeff Prince
Publisher:
McGraw-Hill Education
SEE MORE TEXTBOOKS