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If I can buy a car today for $ 4 0 0 0 and it is worth $ 9 0 0 0 in extra income
If I can buy a car today for $ and it is worth $ in extra income to me next year because it enables me to get
a job as travelling salesperson, should I take out a loan from Larry the Loan Shark at an interest rate if no one
else will give me a loan? Will I be better or worse off as a result of taking out this loan?
I shouldshould not
take out the loan from Larry the Loan Shark. As a result of taking out the loan, I will be betterworse off by
assuming that without the loan I would buy the car after next year for the same price without a loan.
Can you make a case for legalizing loan sharking?
A Yes, since there are some cases where loan sharking can make borrowers better off
B No since loan sharking exploits borrowers
C No since loan sharking is a violent activity
D Yes, since loan sharking always makes borrowers and lenders better off
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