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The Diagram Below Shows the Market for Loanable Funds for a Closed

Question 49

Multiple Choice

The diagram below shows the market for loanable funds for a closed economy. 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 C? A)  population growth and a technological improvement B)  an increase in the interest rate C)  population growth D)  a decrease in the interest rate E)  population growth and a simultaneous reduction in the marginal product of capital 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 C?


A) population growth and a technological improvement
B) an increase in the interest rate
C) population growth
D) a decrease in the interest rate
E) population growth and a simultaneous reduction in the marginal product of capital

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