Multiple Choice
Suppose the government imposes a policy which does not allow interest rates in the home mortgage market to rise above a certain level.Given that this level is set below the equilibrium interest rate,which of the following is a consequence of this policy?
A) There will be a surplus of mortgages in the market.
B) The demand for mortgages will outstrip supply.
C) The credit standards for people applying for loans will be tightened.
D) All the individuals who apply for a mortgage will be able to get one.
Correct Answer:
Verified
Correct Answer:
Verified
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