DISCUSSION: The fourth paragraph covers the practical problems of sovereign immunity.
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- CORRECT. Read the fourth paragraph. Sovereigns wanted to expand their empires (the first sentence of paragraph 4), but because they had unlimited power they were charged high interest rates (the last sentence of paragraph 4).
- The passage never mentions monarchs passing laws.
- We only know that it was easier for subjects to borrow money (the last sentence of paragraph 4). We don’t know if it had only become easier in the 17th century.
- Actually, the monarchs borrowed less than they would have liked (or at higher rates) precisely because they had unlimited power.
- The point of the passage is that monarchs couldn’t commit to respecting property rights, because they had unlimited power.
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