Economics and Education
The explosive growth in student loans.
o Describe the economic issue.
o Why is it important?
o How do the forces of supply impact the issue?
o How do the forces of demand impact the issue?
o How does elasticity apply to the issue? If appropriate, include a calculation for elasticity.
o Which theories of economics apply (for example, theory of consumer choice, theory of the firm)?
How can economics explain this phenomenon?
Would the student loan market be better off if it were privatized again?
Is there a correlation between the interest rates charged and the number of loans increasing?
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