Microeconomics 13th Edition by Russell Sobel, David Macpherson, Richard Stroup, James Gwartney

Exercise 7

The interest rates charged on outstanding credit card balances are generally higher than the interest rate that banks charge customers with a good credit rating. Why do you think the credit card rate is so high? Should the government impose an interest rate ceiling of, say, 10 percent? If it did, who would be hurt and who would be helped? Discuss.