Question
What is the effect of a usury law that limits the market rate of interest if some potential lenders, hoping that the authorities do not catch them, are still willing to loan money at illegally high rates?
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This law is designed to protect borrowers from excessively high interest rates. However, if some potential lenders are still willing to loan money at illegally high rates, this could have a negative impact on the economy. Show more…
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If a usury law limits interest rates to no more than 35%, what would the likely impact be on the amount of loans made and interest rates paid?
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Effects of Government Interventions
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