The diagram below shows the market for financial capital in the long run when real GDP is equal to potential output,Y*.
FIGURE 25-3 Refer to Figure 25-3.Suppose the interest rate in this market for financial capital is 2%.In this case there is an excess ________ financial capital of ________ billion dollars.
A) supply of; 30
B) demand for; -30
C) supply of; 50
D) demand for; 30
E) demand for; 80
Correct Answer:
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