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.  Because of a threat of 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.

Microeconomics: Private and Public Choice (MindTap Course List)
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ISBN:9781305506893
Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Publisher:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Chapter14: Investment, The Capital Market, And The Wealth Of Nations
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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. 

    • Because of a threat of 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.
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