Question
2. The market for capital The following graph shows the supply of and demand for capital in a market over the last year. You can
2. The market for capital
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.
Equilibrium0246810121416182020181614121086420INTEREST RATE, r (Percent)CAPITAL (Billions of dollars)D1D2S
The market interest rate increased by 2.0%, and the amount of capital borrowed by billion.
Does it appear that the economy has strengthened or weakened over the past year?
Strengthened
Weakened
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Managerial Accounting Wileyplus Blackboard Student Package
Authors: Charles E. Davis, Elizabeth Davis
3rd Edition
1119342511, 978-1119342519
