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

Question 103

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  FIGURE 15-2 -Refer to Figure 15-2.The market for financial capital is initially in equilibrium at point E<sub>1</sub>.A shift of the aggregate saving supply curve from S<sub>1</sub> to S<sub>2</sub>,all other things being equal,would A) shift the investment demand curve to I<sub>2</sub>. 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. FIGURE 15-2
-Refer to Figure 15-2.The market for financial capital is initially in equilibrium at point E1.A shift of the aggregate saving supply curve from S1 to S2,all other things being equal,would


A) shift the investment demand curve to I2.
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.

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