The Economics of Money, Banking, and Financial Markets 10th Edition by Frederic Mishkin

تمرين 8

Following the global financial crisis, mortgage rates reached record-low levels in 2011.
a. What effect should this have had on the economy, according to the household liquidity effect channel?
b. During the same time, most banks raised their credit standards significantly, making it much more difficult to qualify for home loans and to refinance existing loans. Flow does this infonnation alter your answer to part (a)?