FIGURE 15-2 -Refer to Figure 15-2.The Market for Financial Capital Is Initially

Multiple Choice

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

A) shift the supply of saving curve to S₂.
B) change the technology of capital use.
C) decrease the equilibrium interest rate.
D) increase the equilibrium interest rate.
E) reduce the marginal product of capital.