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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
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. 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? Weakened Strengthened
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