5.3 Usury laws place a ceiling on interest rates that lenders such as banks can charge borrowers....

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5.3 Usury laws place a ceiling on interest rates that lenders such as banks can charge borrowers. Why would we expect low-income households in states with usury laws to have significantly lower levels of consumer credit (loans) than comparable households in states without usury laws? (Hint: The interest rate is the price of a loan, and the amount of the loan is the quantity measure.)

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Managerial Economics And Strategy

ISBN: 9780135640944

2nd Global Edition

Authors: Jeffrey M. Perloff, James A. Brander

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