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.
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
Related questions
Question
Question 7
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
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
Knowledge Booster
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
Principles of Economics (12th Edition)
Economics
ISBN:
9780134078779
Author:
Karl E. Case, Ray C. Fair, Sharon E. Oster
Publisher:
PEARSON
Engineering Economy (17th Edition)
Economics
ISBN:
9780134870069
Author:
William G. Sullivan, Elin M. Wicks, C. Patrick Koelling
Publisher:
PEARSON
Principles of Economics (12th Edition)
Economics
ISBN:
9780134078779
Author:
Karl E. Case, Ray C. Fair, Sharon E. Oster
Publisher:
PEARSON
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)
Economics
ISBN:
9781305585126
Author:
N. Gregory Mankiw
Publisher:
Cengage Learning
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-…
Economics
ISBN:
9781259290619
Author:
Michael Baye, Jeff Prince
Publisher:
McGraw-Hill Education