Solved

The Market Interest Rate Is Determined by Saving Supply and Investment

Question 62

Multiple Choice

The market interest rate is determined by saving supply and investment demand, as shown in the graph. If the interest rate changes such that the amount of money supplied moves from point 4 to point 2, how would the amount of money demanded change? The market interest rate is determined by saving supply and investment demand, as shown in the graph. If the interest rate changes such that the amount of money supplied moves from point 4 to point 2, how would the amount of money demanded change?   A)  quantity demanded increases from point 1 to point 5 B)  quantity demanded increases from point 5 to point 1 C)  quantity demanded decreases from point 1 to point 5 D)  quantity demanded decreases from point 5 to point 1


A) quantity demanded increases from point 1 to point 5
B) quantity demanded increases from point 5 to point 1
C) quantity demanded decreases from point 1 to point 5
D) quantity demanded decreases from point 5 to point 1

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions

Unlock this Answer For Free Now!

View this answer and more for free by performing one of the following actions

qr-code

Scan the QR code to install the App and get 2 free unlocks

upload documents

Unlock quizzes for free by uploading documents