1.For economic factor, insert an X in the table indicating whether it would shift the supply or demand curve Left (decrease) or Right (increase) in the Real Credit Market.

Economic Factor Supply Supply Demand Demand (Left) (Right) (Left) (Right) Government borrows fund to finance the deficit Households increase saving Federal government increases taxes Firms borrow to increase cash holding (liquidity) Central bank purchases $2 trillion of securities New residential home purchases reach record high Firms reduce planned investment