FIGURE 15- 2
-Refer to Figure 15- 2. Suppose the economy begins at point E1. If technology changes in a way that increases the marginal product of capital, which movement best depicts the change in equilibrium in the market for financial capital?

Question

Quizplus · Accepted Answer

The increase in the marginal product of capital will lead to an increase in the demand for capital, which will shift the equilibrium to the right, from E1 to E4.

FIGURE 15- 2 -Refer to Figure 15- 2. Suppose the Economy Begins at Economy