80. If the equilibrium rate of interest would be 10 percent, but the usury law sets 8 percent, a.some applicants for loans would likely be turned down. b.economic efficiency would be promoted. c.the quantity of funds supplied would be greater than the quantity demanded. d.lenders would be able to fund fully all requests for loans.

Real interest rate(r) is referred to a rate that is adjusted to eliminate the inflation effect.…

Answered: If the equilibrium rate of interest…

Brief Principles of Macroeconomics (MindTap Course List)

8th Edition

ISBN:9781337091985

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter1: Ten Principles Of Economics

Section: Chapter Questions

Problem 5PA

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80. If the equilibrium rate of interest would be 10 percent, but the usury law sets 8 percent,

	a.	some applicants for loans would likely be turned down.
	b.	economic efficiency would be promoted.
	c.	the quantity of funds supplied would be greater than the quantity demanded.
	d.	lenders would be able to fund fully all requests for loans.

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