Illustrate graphically the effect the credit market crisis in the United States in 2008 had in the market for existing single-family homes. Assuming the demand for existing single-family homes is relatively inelastic, what is likely to happen to the total revenues of home sellers as a result of the credit market crisis?

Assume that the expected inflation rises to Еπ₂. Consequently, the expected return on one-year discount bonds (discussed in Question 2) relative to other assets falls for any given price and interest rate. The demand for these bonds falls, and the supply rises. The new equations for the demand and the supply of these bonds are as follows: New demand for bonds: P₂ = -0.7Q₂ + 1050 New supply of bonds: P2 = Q₂ + 850 1. Calculate the new expected equilibrium quantity of bonds. Round your answer to two decimal places. [1] 2. Calculate the new expected equilibrium price of bonds. Round your answer to two decimal places. [1] 3. Calculate the new equilibrium interest rate in this market. Round your answer to two decimal places. [1]

​​​​​​Construct a well-labeled diagram of supply and demand in the market for loans that depicts an equilibrium with credit rationing. Be sure to clearly identify the market interest rate, the quantity of loans supplied and the quantity of loans demanded.

If an economic expansion in the economy caused an increase in the demand for loanable funds, what would be the effect on the interest rate and the quantity of funds loaned in the credit market?   Question 20 options:   Interest rates would decrease and the quantity of funds loaned would increase   Interest rates and the quantity of funds loaned would decrease   Interest rates and the quantity of funds loaned would increase   Interest rates would increase and the quantity of funds loaned would decrease