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The Diagram Below Shows the Market for Financial Capital for a Closed

Question 89

Multiple Choice

The diagram below shows the market for financial capital for a closed economy. 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 D.Which of the following events is likely to move the equilibrium to point A? A) an increase in the interest rate B) a decrease in the interest rate C) a technological improvement D) the introduction of a policy that encourages saving E) growth in average household income FIGURE 15-3
-Refer to Figure 15-3.Suppose the current equilibrium in the market for financial capital is at point D.Which of the following events is likely to move the equilibrium to point A?


A) an increase in the interest rate
B) a decrease in the interest rate
C) a technological improvement
D) the introduction of a policy that encourages saving
E) growth in average household income

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