Equilibrium interest rate and quantity of loanable funds

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1. Suppose people expect housing prices to decrease in the near future

a. What would be the major effect?

- Increase in demand for loanable funds  

- Decrease in demand for loanable funds  

- Increase in supply of loanable funds  

- Decrease in supply of loanable funds  

b, Why is so?

c, Graphically illustrate the effect on the equilibrium interest rate and quantity of loanable funds

Reference no: EM131527382

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