When law-makers impose ceilings on the amount of annual interest charged by lenders, their actions have the effect of
A) excluding certain borrowers from the legally regulated credit market.
B) expanding retail sales.
C) increasing the number of loans made.
D) lowering interest rates for most borrowers.
E) redistributing income from creditors to debtors.
A
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A balance sheet for the central bank of Pecunia is shown below: Central Bank Balance Sheet Assets Liabilities Foreign assets $1,000 Deposits held by private banks $500 Domestic assets $1,500 Currency in circulation $2,000 Please write the
new balance sheet if the bank sells $100 worth of foreign bonds for domestic currency.
Many governments actively work to:
A. attract foreign direct investment, hoping it will build up their capital stock when domestic savings aren't sufficient. B. attract foreign direct investment, so that when foreign companies invest in local firms, they can transfer human capital to local managers. C. discourage foreign direct investment, in an effort to encourage locals to invest in their own economy. D. discourage foreign direct investment, in an effort to avoid "crowding out."