According to the passage, which one of the following was a consequence of the absence of limitations on the legal pow...

Minerva on August 11, 2019

A vs D

I was torn between A and D. Can someone go over these answer choices? Thanks!

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Irina on August 11, 2019

@Minerva,

Let's look at (A) & (D).

The second paragraph tells us that monarchs sought to expand their empires and required vast amounts of capital, but, due to the regimes' inability to commit to repay debts or to honor property rights, creditors required higher interest rates to compensate for this high risk of non-repayment, thus making it difficult to finance the expansion. This argument is accurately summarized in the answer choice (A).

The claim that these monarchs borrowed more money than they would have if the power had been restricted, expressed in (D), is contrary to what the passage is saying. Since unlimited power meant that monarchs could renege on their debt commitments at any time, it made it harder for them to find creditors to borrow money. The third paragraph confirms this by stating that once the Crown's power has been restricted, the borrowing increased and interest rates fell (lines 45-47)

Does this help?

Let me know if you have any further questions.