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-(Exhibit: Loanable Funds and Capital Markets) a Decrease in the Demand

Question 93

Multiple Choice

-(Exhibit: Loanable Funds and Capital Markets) A decrease in the demand for capital, as shown in Panel (b) as a movement from D<sub>2</sub> to D<sub>1</sub>, will lead to: A) the movement from D<sub>1</sub> to D<sub>2</sub> in Panel (a) . B) the movement from D<sub>2</sub> to D<sub>1</sub> in Panel (a) . C) a decrease in the quantity of capital demanded, as shown in Panel (d) when the interest rate rises from r<sub>1</sub> to r<sub>2</sub>. D) none of the above.
-(Exhibit: Loanable Funds and Capital Markets) A decrease in the demand for capital, as shown in Panel (b) as a movement from D2 to D1, will lead to:


A) the movement from D1 to D2 in Panel (a) .
B) the movement from D2 to D1 in Panel (a) .
C) a decrease in the quantity of capital demanded, as shown in Panel (d) when the interest rate rises from r1 to r2.
D) none of the above.

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