FIGURE 15- 2
-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

Quizplus · Accepted Answer

A shift of the aggregate saving supply curve from S1 to S2 indicates an increase in savings, which would lead to a surplus of financial capital at the initial interest rate. This surplus would cause the equilibrium interest rate to decrease as the market adjusts to the new supply level.

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