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So Rate of Return Ro Quantity of Financial Capital The figure above shows the market for the financial capital (funds) market. Note that the rate
So Rate of Return Ro Quantity of Financial Capital The figure above shows the market for the financial capital (funds) market. Note that the "rate of return" means the interest rate. Let's say that the market shows the equilibrium interest rate as 6%, but the market stays its interest rate is 2 percent, then there is a shortage in the financial capital market O the demand for financial capital funds curve will shift rightward. O there is a surplus in the financial capital market O there will be a leftward shift in the demand for financial capital curve
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