FIGURE 15- 2
-Refer to Figure 15- 2. The market for financial capital is initially in equilibrium at E1. A shift of the aggregate investment demand curve from I1 to I2, all other things constant, would

Question

Quizplus · Accepted Answer

An increase in aggregate investment demand would put upward pressure on the equilibrium interest rate, causing it to increase. This is because a higher level of investment demand will require more financial capital, increasing the demand for loans in the market and causing lenders to charge a higher interest rate. The other answer choices are not directly related to the given scenario.

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