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Card 9 / 17:
In the financial market, what causes a movement along the demand curve? What causes a shift in the demand curve?
Changes in the interest rate (i.e., the price of financial capital) cause a movement along the demand curve. A change in anything else (non-price variable) that affects demand for financial capital (e.g., changes in confidence about the future, changes in needs for borrowing) would shift the demand curve.
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