The diagram shows the market for financial capital assuming national income is constant at Y. With national saving at NS0 and investment demand at I0D, and an interest rate of i1, there is an excess supply of financial capital. This excess supply will drive the interest rate down until it reaches the equilibrium point i, where the supply of financial capital equals the demand for investment.

1. The diagram below show the market for financial capital assuming that national income is constant
at Y : Suppose national saving is reflected by NS0 and investment demand is reflected by I0D. If
the real interest rate is i1, there is which will drive the interest rate down until it reaches i. A. an
excess demand for private saving B. an excess supply of financial capital C. an excess demand
for public saving D. an excess supply of investment E. an excess demand for financial capital F.
an excess supply of national saving