Discuss what would happen to the discount factor for mortgages under the following circumstances (see Appendix 13B):  a. A recession is expected in the near future. b. The Fed has taken action to...

Discuss what would happen to the discount factor for mortgages under the following circumstances (see Appendix 13B):

 a. A recession is expected in the near future.

b. The Fed has taken action to raise interest rates.

 c. International fi nancial crises have caused an infl ow of funds into the United States.

d. The federal government is running a larger surplus than expected.