The city council of a major city is concerned about the high interest rates local banks charge on automobile loans. The banks have argued that the high rates are necessary to cover their cost of obtaining loanable funds. In re¬ sponse, two proposals are before the city council:

(a) an ordinance that would limit the interest local banks could legally pay on deposits and

(b) an ordi¬ nance that would limit the rate local banks could charge on car loans. How would each ordinance affect the local market for car loans? Use a graph of the local deposit and loan market to answer this question.