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Suppose home owners owe $8 trillion in mortgage loans. Instructions: Enter your responses as a whole number. In part b, do not include a negative

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Suppose home owners owe $8 trillion in mortgage loans. Instructions: Enter your responses as a whole number. In part b, do not include a negative sign (-) with your answer. a. If the mortgage interest rate is 5 percent, approximately how much are home owners paying in annual mortgage interest? billion b. If the interest rate drops to 4 percent, by how much will annual interest payments decline? $ billion c. How will this change in the interest rate impact aggregate demand? Aggregate demand will (answer increase, decrease, or remain unchanged)

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