Refer to the Graph of the Supply and Demand for Loanable

Multiple Choice

Refer to the graph of the supply and demand for loanable funds. A limit of 10 percent on the interest rate that banks can charge for loans will

A) have an equal effect on borrowers and lenders.
B) save borrowers 5 percent and cost lenders 5 percent on the amount loaned.
C) give lenders a premium of 5 percent and cost borrowers 5 percent on the amount loaned.
D) save borrowers 10 percent and cost lenders 10 percent on the amount loaned.