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  3. 2. the market for capital the following graph show

2. The market for capital The following graph shows the supply of and demand for...

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Finance

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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 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. -D2------ Equilibrium INTEREST RATE, 1 (Percent) 0 2 4 16 18 20 6 8 10 12 14 CAPITAL (Billions of dollars) 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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