Problem PSlO.1.3 1 point possible (graded) Bugsy is the only loanshark in Miami. He is reviled throughout the community for his practice of charging higher interest rates to more desperate borrowers. Local consumer credit advocates lobby Miami's mayor to impose regulations on Bugsy. If the mayor's objective is to increase social welfare by minimizing deadweight loss, what regulation should he enact? O The mayor should tax Bugsy's transactions 0 The mayor should cap the maximum interest rate Bugsy can charge 0 The mayor should cap the number of loans Bugsy can make 0 Nothing; social welfare is already being optimized Submit You have used 0 of 2 attempts Save