Refer to the Above Graph

question 193

Multiple Choice

Refer to the above graph.If interest rates increased by 2 percentage points, what event would most likely counteract the crowding-out effect?

• A)a shift from curve B to curve A
• B)a shift from curve A to curve B
• C)a movement from point 5 to point 2
• D)a movement from point 3 to point 1

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Definitions:

Surplus

An excess of production or supply over demand.

Quantity Supplied

The amount of a good or service that producers are willing to sell at a given price over a specific period.

Quantity Demanded

The total amount of a good or service that consumers are willing and able to purchase at a specific price level, at a given time.

Quantity Supplied

The amount of a good or service that producers are willing and able to sell at a given price during a specified time period.