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. INTEREST RATE. r (Percent) 20 18 18 14 12 2 0 D2 D1 2 4 6 8 10 12 14 CAPITAL (Billions of dollars) 16 18 20 O Weakened O Strengthened + Equilibrium The market interest rate increased by 2.0%, and the amount of capital borrowed Does it appear that the economy has strengthened or weakened over the past year? (?) by billion.

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. INTEREST RATE. r (Percent) 20 18 18 14 12 2 0 D2 D1 2 4 6 8 10 12 14 CAPITAL (Billions of dollars) 16 18 20 O Weakened O Strengthened + Equilibrium The market interest rate increased by 2.0%, and the amount of capital borrowed Does it appear that the economy has strengthened or weakened over the past year? (?) by billion.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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