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Online mortgage companies have been growing in numbers and size, and as a result, other things equal, traditional banks have to decrease the interest on their mortgage loans as the supply for all mortgage loans decreased increase the interest on their mortgage loans as the demand for all mortgage loans increased. O decrease the interest on their mortgage loans as the demand for traditional mortgage loans decreased.

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Answer #1

The banks will have to decrease the interest rate on their mortgage loans in the market for traditional loans because at a lower demand the demand curve will shift to the left decreasing the interest rate and quantity. The answer is "C".

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