Suppose people expect housing prices to collapse again in, Financial Management

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Suppose people expect housing prices to collapse again in

Suppose people expect housing prices to collapse (again) in the near future.

What would be the major effect? Why?

A.Increase in demand for loanable funds

B.Decrease in demand for loanable funds

C.Increase in supply of loanable funds

D. Decrease in supply of loanable funds

b. Graphically illustrate the effect on the equilibrium interest rate and quantity of loanable funds.

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Financial Management: Suppose people expect housing prices to collapse again in

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