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 D.Which of the following events is likely to move the equilibrium to point A?
A) a technological improvement
B) an increase in the interest rate
C) a decrease in the interest rate
D) the introduction of a policy that encourages saving
E) growth in average household income
Correct Answer:
Verified
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