Demand curve for home mortgage loans

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(a) As an application of Monetary Policy, the financial regulator APRA introduced stricter lending standards for residential Home Mortgage Loans in March 2017. Briefly explain why this would shift the Demand curve for Home Mortgage Loans.

(b) In 2017, what would you expect to happen to the amount of Demand for Home Mortgage Loans in Australia when the Demand curve for Home Mortgage Loans shifts as a result of the stricter lending standards.

Reference no: EM132932890

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