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9.15.10 - Market for loanable funds – people want to...

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9/14/10 Econ Notes Ceiling Prices causes shortages and floor prices (minimum price) causes surpluses. Government Price Controls Interest rate = price for money (borrowing or loaning) Some states have a Usury law (there’s going to be a maximum for interest rate charges)
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Unformatted text preview: Market for loanable funds – people want to borrow money at lower interest rate. If the government usury law sets maximum interest rate charged to lenders lower than market equilibrium -> stimulates economy....
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