DISCUSSION: The fourth paragraph covers the practical problems of sovereign immunity.
- CORRECT. Read the fourth paragraph. Sovereigns wanted to expand their empires (lines 24-26), but because they had unlimited power they were charged high interest rates (lines 34-37).
- The passage never mentions monarchs passing laws.
- We only know that it was easier for subjects to borrow money (lines 35-35). 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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