The diagram below show the market for financial capital assuming that national income is constant at Y*. Suppose national saving is reflected by NS and investment demand is which will drive reflected by 10. If the real interest rate is i 3, there is the interest rate up until it reaches i *. A. an excess supply of national saving B. an excess demand for private saving OC. an excess demand for financial capital OD. an excess supply of financial capital E. an excess demand for investment OF. an excess supply of public saving Real Interest Rate N NSO Quantity of financial capital ($) NS₁ DO

The diagram below show the market for financial capital assuming that national income is constant at Y. Suppose national saving is reflected by NS and investment demand is which will drive reflected by 10. If the real interest rate is i 3, there is the interest rate up until it reaches i . A. an excess supply of national saving B. an excess demand for private saving OC. an excess demand for financial capital OD. an excess supply of financial capital E. an excess demand for investment OF. an excess supply of public saving Real Interest Rate N NSO Quantity of financial capital ($) NS₁ DO

Principles of Macroeconomics (MindTap Course List)

7th Edition

ISBN:9781285165912

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter13: Savings,Investment And The Financial System

Section: Chapter Questions

Problem 2QCMC

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