Principles of Economics 2e
Principles of Economics 2e
2nd Edition
ISBN: 9781947172364
Author: Steven A. Greenlaw; David Shapiro
Publisher: OpenStax
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Chapter 4, Problem 7SCQ

Which of the following changes in the financial market will lead to a decline in interest rates:

  1. a rise in demand
  2. a fall in demand
  3. a rise in supply
  4. a fall in supply

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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. Sketch a demand and supply diagram to support your answers.  The number of people at the most common ages for home-buying increases. People gain confidence that the economy is growing and that their jobs are secure. 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. Sketch a demand and supply diagram to support your answers.  The number of people at the most common ages for home-buying increases. People gain confidence that the economy is growing and that their jobs are secure.  Banks that have made home loans find that a larger number of people than they expected are not repaying those loans.  Because of a threat of a war, people become uncertain about their economic future The overall level of saving in the economy diminishes.  The federal government changes its bank regulations in a way that makes it cheaper and easier for banks to make home loans.
Help me please

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