How economic changes will affect the equilibrium price

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Reference no: EM133092784

Question: Predict how each of the following economic changes will affect the equilibrium price and quantity in the financial market for home loans.

Sketch a demand and supply diagram to support your answers.

a. The number of people at the most common ages for home-buying increases.

b. People gain confidence that the economy is growing and that their jobs are secure.

c. Banks that have made home loans find that a larger number of people than they expected are not repaying those loans.

d. Because of a threat of a war, people become uncertain about their economic future.

e. The overall level of saving in the economy diminishes.

f. The federal government changes its bank regulations in a way that makes it cheaper

Reference no: EM133092784

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