FIGURE 15-
-Refer to Figure 15- 2.The market for financial capital is initially in equilibrium at point E1.A shift of the aggregate saving supply curve from S1 to S2,all other things being equal,would

Question

FIGURE 15- 
-Refer to Figure 15- 2.The market for financial capital is initially in equilibrium at point E1.A shift of the aggregate saving supply curve from S1 to S2,all other things being equal,would

Quizplus · Accepted Answer

A shift of the aggregate saving supply curve from S1 to S2 indicates an increase in the supply of financial capital. This puts downward pressure on the equilibrium interest rate, leading to a decrease in the equilibrium interest rate from i1 to i2.

FIGURE 15- -Refer to Figure 15- 2.The Market for Financial Capital Is