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For the Week 5 Critical Thinking Exercise, you will explain the Keynesian view to enacting tighter federal restrictions on mortgage lending practices including requiring higher
For the Week 5 Critical Thinking Exercise, you will explain the Keynesian view to enacting tighter federal restrictions on mortgage lending practices including requiring higher down payment levels and increasing the minimum credit score required to approve housing loans. A major contributor to the 2008-2009 Great Recession was the housing market "bust" that was characterized by rising home values that caused the AD curve to shift to the right as more household saw an increase in wealth due to the appreciation. Explain based on your readings and supplementary resources, how would such a shift in regulatory policy impact the housing market and pricing? For support you can utilize information from the National Association of Realtors at the links below
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