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 C?
A) population growth and a simultaneous increase in the marginal product of capital
B) population growth and a simultaneous reduction in the marginal product of capital
C) population growth and a technological improvement
D) an increase in the interest rate and simultaneous technological improvement
E) a decrease in the interest rate
Correct Answer:
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