Final answer:
Imposing a federal interest rate ceiling of 20% on all loans would benefit borrowers by capping the cost of borrowing, but it would limit the potential income for lenders, potentially leading to a credit shortage.
Step-by-step explanation:
If the government imposed a federal interest rate ceiling of 20% on all loans, the individuals and businesses seeking to borrow money would gain from this regulation because it caps the cost of borrowing. However, lenders such as banks and other financial institutions would lose, as they would be limited in the interest income they can generate, especially if the market rate for loans is above 20%. This ceiling could potentially lead to a shortage of available credit if lenders decide it is not profitable enough to lend at this capped rate, especially to higher risk borrowers who would typically be charged a higher interest rate to offset the risk of default.