Courses Catalog and Study Tools Rental Options College Success Tips Career Success Tips telp Ive Feedback 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 ha 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, (Percent) 20 02 18 27. 16 2 o t DI 2 . 8 12 14 10 CAPITAL (Billions of dollars) 16 20 + Equilibrium The market interest rate increased by 2.0%, and the amount of capital borrowed billon. KELO E TUOR Rental Options College Success Tips Career Success Tips Help Give Feedback INTEREST RATE. P 10 12 14 CAPITAL (ions of dollars) 16 18 20 The market interest rate increased by 2.0%, and the amount of capital borrowed Which of the following factors could be responsible for the change in demand shown in the graph? billion. The Federal Reserve (the Fed) decided to relax its monetary policy and expanded the money supply. New technological advances opened up more production opportunities for businesses. Households began saving a greater percentage of their income. Expected inflation decreased. Grade It Now Save & Continue Continue without saving