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

question 52

Multiple Choice

FIGURE 15-2
-Refer to Figure 15-2.The market for financial capital is initially in equilibrium at point E₁.If the marginal product of capital increases,all other things being equal,the

• A)investment demand curve will shift to I₂ and the new equilibrium will be E₄.
• B)supply of saving curve will shift to S₂ and the new equilibrium will be E₂.
• C)investment demand curve will shift to I₂,the supply of saving will shift to S₂,and the new equilibrium will be E₃.
• D)the equilibrium will remain at E₁.
• E)the supply of saving curve will shift to S₂ and new equilibrium will be E₂.

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