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.

  

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

  

b. People gain confidence that the economy is growing and that their jobs are secure.

  

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.

  

e. The overall level of saving in the economy diminishes.

  

f. 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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a The demand curve shifts right increasing interest rates and increasi... View the full answer