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Principles of Economics 2e

2nd Edition
Steven A. Greenlaw; David Shapiro
ISBN: 9781947172364

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BuyFindarrow_forward

Principles of Economics 2e

2nd Edition
Steven A. Greenlaw; David Shapiro
ISBN: 9781947172364
Textbook Problem

Would usury laws help or hinder resolution of a shortage in financial markets?

To determine

What would be the effect of usury laws in the financial markets?

Explanation

If the government uses usury laws in the financial markets, it will decide a maximum interest rate above which no lender can charge it. It will decrease the profits of lenders...

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