Ib Economics Commentary – Aggregate Demand

This article covers the first increase in housing prices in Australia in raising hopes that Australian housing prices may recover in Housing prices have also but the average cost for a house has also The article states that this is mainly because of low interest rates and shortage of Low interest rates that borrowers pay to lenders for using the borrowed would cause a shift in demand capability and willingness to consume a commodity at a given price at a given to the right D to The reason for this is because consumers are predicted to borrow more money at lower interest rates the rewards for saving money are less than if interest rates were which would therefore lead to an increase in As a the equilibrium the supply of a commodity equals its resulting in neither surplus nor would move from W to X causing an increase in price P to low interest rates would cause lower mortgage which would deter homeowners from selling their houses is usually predicted during a This would result in a decreased shift in supply and willingness of suppliers to sell a commodity at a given price at a given of houses S to

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