How will the U.S. loan market be affected by thepandemic of COVID-19?
State your understanding and carefully explain your argumentswith economic tools and/or economic intuition, including theaspects of
- demand of credit;
- supply of credit;
- commercial banks’ reaction;
- equilibrium price and quantity without considering governmentactions;
- equilibrium price and quantity, given that the Fed injectsmoney into the banking system in order to stimulate lending.
