Question

Use the interactive graph to illustrate the effects of a rise in investor confidence. Next, move point E to the new equilibrium. Interest Rate (%) 10 9 8 7 6 5 4 3 2 1 0 0 50 100 150 200 250 300 350 400 450 500 Savings and Investment (in billions) S E D Select the answer that best describes the new equilibrium. - The interest rate and the level of investment decreased. - The interest rate decreased, but investment increased. - The interest rate and the level of investment increased. - The interest rate increased, but investment decreased. What is true of the new equilibrium? - Dollars Saved < Dollars Borrowed - Dollars Saved ? Dollars Borrowed - Dollars Saved > Dollars Borrowed - Dollars Saved = Dollars Borrowed

          Use the interactive graph to illustrate the effects of a rise in investor confidence. Next, move point E to the new equilibrium.

Interest Rate (%)
10
9
8
7
6
5
4
3
2
1
0
0 50 100 150 200 250 300 350 400 450 500
Savings and Investment (in billions)

S
E
D

Select the answer that best describes the new equilibrium.
- The interest rate and the level of investment decreased.
- The interest rate decreased, but investment increased.
- The interest rate and the level of investment increased.
- The interest rate increased, but investment decreased.

What is true of the new equilibrium?
- Dollars Saved < Dollars Borrowed
- Dollars Saved ? Dollars Borrowed
- Dollars Saved > Dollars Borrowed
- Dollars Saved = Dollars Borrowed

Use the interactive graph to illustrate the effects of a rise in investor confidence. Next, move point E to the new equilibrium.

Interest Rate (%)
10
9
8
7
6
5
4
3
2
1
0
0 50 100 150 200 250 300 350 400 450 500
Savings and Investment (in billions)

S
E
D

Select the answer that best describes the new equilibrium.
- The interest rate and the level of investment decreased.
- The interest rate decreased, but investment increased.
- The interest rate and the level of investment increased.
- The interest rate increased, but investment decreased.

What is true of the new equilibrium?
- Dollars Saved < Dollars Borrowed
- Dollars Saved ? Dollars Borrowed
- Dollars Saved > Dollars Borrowed
- Dollars Saved = Dollars Borrowed

Added by Amy P.

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