If pawn shops charge high interest rates on loans why do


If pawn shops charge high interest rates on loans, why do people borrow money from them?

Suppose Congress passes a law that puts a ceiling of 10% per year on the interest rate that pawn shops can charge on loans.

Would this law be likely to help low-income people? Briefly explain.

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Finance Basics: If pawn shops charge high interest rates on loans why do
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