The diagram below shows the market for loanable funds 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 D?
A) population growth
B) an increase in the interest rate
C) a decrease in the interest rate
D) a reduction in the marginal product of capital
E) a technological improvement
Correct Answer:
Verified
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