The diagram below shows the market for financial capital for a closed economy.
FIGURE 15- 3
-Refer to Figure 15- 3.Suppose the current equilibrium in the market for financial capital is at point A.Which of the following events is likely to move the equilibrium to point D?
A) a reduction in the marginal product of capital
B) population growth
C) an increase in the interest rate
D) a decrease in the interest rate
E) a technological improvement
Correct Answer:
Verified
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