8,Q3) Hey, need help with the following multi-part macroeconomics problem. Thank you in advance! Explain how the equilibrium real interest rate and the equilibrium quantity of credit would change in each of the following scenarios and illustrate your answer with a well-labeled graph of the credit market. As the real estate market recovers from the 2007–2009 financial crisis, households begin to buy more houses and condominiums, and they apply for more mortgages to enable those purchases. Congress agrees to a large tax cut which increases the level of the government deficit. Households begin to fear that a growing pandemic may cause them to lose their jobs and they increase their savings for a rainy day.
8,Q3) Hey, need help with the following multi-part
Explain how the equilibrium real interest rate and the
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As the real estate market recovers from the 2007–2009 financial crisis, households begin to buy more houses and condominiums, and they apply for more mortgages to enable those purchases.
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Congress agrees to a large tax cut which increases the level of the government deficit.
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Households begin to fear that a growing pandemic may cause them to lose their jobs and they increase their savings for a rainy day.
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Businesses become more optimistic about the future of the economy, and decide to distribute more of their earnings as dividends to their shareholders.
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