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How does impact supply curve as well as interest rate

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In the U.S., much of mortgage lending is guaranteed directly or indirectly by the Federal government. That is, if you are an investor (lender) in the mortgage market, you don't have to worry about the mortgage borrowers defaulting. In case of a default, the government will pay you.

Problem 1: How does this impact the supply curve, demand curve, as well as equilibrium quantity and interest rate in mortgage lending?

Reference no: EM132996193

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