When governments outlaw high interest rates and the ceiling is binding, what probably happens to the total

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When governments outlaw high interest rates and the ceiling is binding, what probably happens to the total amount of money borrowed?
a. It rises because borrowers are protected from high interest rates.
b. It falls because savers aren’t willing to lend as much money at this low interest rate.
c. Both a and b are usually true.
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Modern Principles of Economics

ISBN: 978-1429278393

3rd edition

Authors: Tyler Cowen, Alex Tabarrok

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