The diagram below shows the market for financial capital 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 B?
A) a reduction in the interest rate
B) an increase in the interest rate
C) an increase in current household income
D) an increase in expected future income
E) a decrease in the marginal product of capital
Correct Answer:
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