Predict how each of the following economic changes will affect the equilibrium price and quantity in the financial market for home loans. Which curve will shift: supply or demand? In which direction will the curve shift: right or left? (It may help to use a demand and supply diagram to conduct your analysis.)  a. The number of people at the most common ages for home-buying decreases.    b. Rents rise extremely rapidly.  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.The overall level of saving in the economy diminishes.  e. The federal government changes its bank regulations in a way that makes it cheaper and easier for banks to make home loans.

ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
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Chapter1: Making Economics Decisions
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Predict how each of the following economic changes will affect the equilibrium price and quantity in the financial market for home loans. Which curve will shift: supply or demand? In which direction will the curve shift: right or left? (It may help to use a demand and supply diagram to conduct your analysis.) 

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

 

b. Rents rise extremely rapidly. 

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.The overall level of saving in the economy diminishes. 

e. 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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