How will the U.S. loan market be affected by the pandemic of COVID-19? State your understanding and...

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Economics

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

  1. demand of credit;
  2. supply of credit;
  3. commercial banks’ reaction;
  4. equilibrium price and quantity without considering governmentactions;
  5. equilibrium price and quantity, given that the Fed injectsmoney into the banking system in order to stimulate lending.

Answer & Explanation Solved by verified expert
4.0 Ratings (523 Votes)
The US has been great in fiscal stimulus of 484 billion dollars and US Fed unlimited bonds buying programmes worth 2 trillion dollars with rate cuts CRR and SLR and liquidity coverage ratio cuts Triggering automotic stabilizers and combined above policy will help alleviates financial distress and grow economic growth throufh higher    See Answer
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