Oct 02, 2017 term paper 2

PREDICT HOW EACH OF THE FOLLOWING ECONOMIC CHANGES WILL AFFECT THE EQUILIBRIUM PRICE AND…

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5. 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 futur


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