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The Diagram Below Shows the Market for Financial Capital for a Closed

Question 72

Multiple Choice

The diagram below shows the market for financial capital for a closed economy.
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 B? A) an increase in the interest rate B) an increase in expected future income C) an increase in current household income D) a decrease in the marginal product of capital E) a reduction in the interest rate 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 B?


A) an increase in the interest rate
B) an increase in expected future income
C) an increase in current household income
D) a decrease in the marginal product of capital
E) a reduction in the interest rate

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