Predict how each of the following economic changes will affect the equilibrium price and quantity in the financial market for home loans. The number of people at the most common ages for home-buying increases. A. Supply curve shifts left B. Demand curve shifts left v People gain confidence that the economy is growing and C. Demand curve shifts right that their jobs are secure. D. Supply curve shifts right Banks that have made home loans find that a larger number of people than they expected are not repaying those loans.
Predict how each of the following economic changes will affect the equilibrium price and quantity in the financial market for home loans. The number of people at the most common ages for home-buying increases. A. Supply curve shifts left B. Demand curve shifts left v People gain confidence that the economy is growing and C. Demand curve shifts right that their jobs are secure. D. Supply curve shifts right Banks that have made home loans find that a larger number of people than they expected are not repaying those loans.
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Transcribed Image Text:Predict how each of the following economic changes will affect the equilibrium price and
quantity in the financial market for home loans.
v The number of people at the most common ages for
A. Supply curve shifts left
home-buying increases.
B. Demand curve shifts left
C. Demand curve shifts right
v People gain confidence that the economy is growing and
that their jobs are secure.
D. Supply curve shifts right
v Banks that have made home loans find that a larger
number of people than they expected are not repaying
those loans.
v Because of a threat of a war, people become uncertain
about their economic future.
v The overall level of saving in the economy diminishes.
v The federal government changes its bank regulations in a
way that makes it cheaper and easier for banks to make
home loans.
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