FIGURE 15- 2 -Refer to Figure 15- 2. the Market for Financial Capital

FIGURE 15- 2
-Refer to Figure 15- 2. The market for financial capital is initially in equilibrium at point E1. If the marginal product of capital increases, all other things being equal, the

A) the equilibrium will remain at E1.
B) supply of saving curve will shift to S2 and the new equilibrium will be E2.
C) the supply of saving curve will shift to S2 and new equilibrium will be E2.
D) investment demand curve will shift to I2, the supply of saving will shift to S2, and the new equilibrium will be E3.
E) investment demand curve will shift to I2 and the new equilibrium will be E4.