1.8. When governments outlaw high interest rates and the ceiling is binding, what probably happens to the...

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1.8. When governments outlaw high interest rates and the ceiling is binding, what probably happens to the total amount of money borrowed?

a. It rises because borrowers are protected from high interest rates.

b. It falls because savers aren't willing to lend as much money at this low interest rate.

c. Both a and b are usually true.

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Modern Principles Macroeconomics

ISBN: 124428

2nd Edition

Authors: Tyler Cowen ,Alex Tabarrok

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Question Posted: Nov 16, 2024 12:00 AM

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1.8. When governments outlaw high interest rates and the ceiling is binding, what probably happens to the...

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Modern Principles Macroeconomics

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