The following graph shows the supply of and demand for capital in a market over the last year. You can see that the demand for capital has increased over the last year (the demand curve shifted to the right). Place the black X at the equilibrium interest rate and the quantity of capital. INTEREST RATE, r (%) 20 18 16 14 12 ON 10 8 6 4 2 0 S D₁ 2 D₂ 4 6 8 10 12 14 16 18 20 CAPITAL (Billions of dollars) Equilibrium --X I Clear All The market interest rate increased by 2.0%, and the amount of capital borrowed by billion.
The following graph shows the supply of and demand for capital in a market over the last year. You can see that the demand for capital has increased over the last year (the demand curve shifted to the right). Place the black X at the equilibrium interest rate and the quantity of capital. INTEREST RATE, r (%) 20 18 16 14 12 ON 10 8 6 4 2 0 S D₁ 2 D₂ 4 6 8 10 12 14 16 18 20 CAPITAL (Billions of dollars) Equilibrium --X I Clear All The market interest rate increased by 2.0%, and the amount of capital borrowed by billion.
Chapter17: Capital And Time
Section: Chapter Questions
Problem 17.2P
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