Calvin is upset that his neighbor Cindy received a low-interest loan from the state government to help her start a new small business but the state government will not offer him a low-interest loan to purchase a new car. What is the best explanation of the difference in treatment? (1 point)
Cindy's activity could contribute much more to economic growth in the state than Calvin's, and Cindy faces greater deterrents to her activity than Calvin.
Banks are generally willing to make loans for purchases but not for new business ventures, so the state government must act for new businesses to be started.
The state government offers low-interest loans on a first-come first-served basis each year, and Cindy applied for a low-interest loan before Calvin did.
'he state government must have made a mistake; there is no justitiable reason for the
difference in treatment described here.