-In Exhibit Q-7, If the Government Imposed an Interest-Rate Ceiling

Multiple Choice

-In Exhibit Q-7, if the government imposed an interest-rate ceiling of 6 percent,

A) savers would gain
B) an excess demand for loanable funds by firms would result
C) it would have no effect on the loanable funds market because the interest rate is already below it
D) the costs of producing goods would increase
E) we would not have enough information to determine what would happen