One effect of a usury law is that it will: a) benefit lenders b) penalize borrowers c) increase the efficiency of investment d) subsidize borrowers with high incomes

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25-07-2022
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One effect of a usury law is that it will: a) benefit lenders b) penalize borrowers c) increase the efficiency of investment d) subsidize borrowers with high incomes

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okpalawalter8 okpalawalter8 · Answer 1 · 2022-07-29T19:07:17+02:00

One effect of a usury law is that it will: Subsidize borrowers with high income . Option D. This is further explained below.

What is the pricing?

Generally, Pricing is the act of determining the value of a product or service. Pricing determines the cost paid by a customer, but it may or may not be tied to the cost paid by the business to produce the product or service. Price and cost are relative—one entity's price may be another's cost.

In conclusion, Subsidize borrowers with high incomes — As imposing a price cap for interest rates would always benefit the borrowers, usury legislation will always have the effect of subsidizing borrowers with high incomes.