asked 34.1k views
1 vote
If the government imposes an effective interest rate ceiling in the loanable funds market, how would quantity demanded and quantity supplied of loanable funds be impacted? quantity demanded / quantity supplied

asked
User Phlaxyr
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7.9k points

1 Answer

3 votes
If the government were to impose an interest rate ceiling, it would aid in increasing the quantity of demand and it would expand the accessibility of loanable funds to the general public. However, it might impact the amount of profit received from interest.
answered
User Ruger
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8.3k points
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