Assume that a perfectly competitive financial market for loanable funds is in equilibrium. Which of the following is most likely to occur to the quantity demanded and quantity supplied of loanable funds if the government imposes an effective interest rate ceiling?
A) Increase/Increase
B) Increase/Decrease
C) No change/No change
D) Decrease/Increase
E) Decrease/Decrease
Ans: B) Increase/Decrease
Economics
You might also like to view...
Which of these terms are used interchangeably?
a. "goods and services" and "inputs" b. "goods and services" and "factors of production" c. "inputs" and "factors of production" d. "land, labor, and capital" and "goods and services"
Economics
Why are costs important in economics?
Please provide the best answer for the statement.
Economics