9.15.10

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

Info iconThis preview shows page 1. Sign up to view the full content.

View Full Document Right Arrow Icon
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)
Background image of page 1
This is the end of the preview. Sign up to access the rest of the document.

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....
View Full Document

This note was uploaded on 02/24/2011 for the course ECON 201 taught by Professor Williams during the Spring '08 term at UVA.

Ask a homework question - tutors are online