In recent decades the economy has experienced dramatic technological improvement in many types of capital equipment.All else remaining equal,this change has the effect of shifting the investment demand curve to the ________ and causing an excess ________ capital,and thus a ________ in the equilibrium interest rate.
A) right; supply of; rise
B) right; demand for; rise
C) left; demand for; rise
D) left; supply of; fall
E) right; demand; fall
Correct Answer:
Verified
Q97: Consider the economy's upward-sloping supply of saving
Q98: For the economy as a whole,the equilibrium
Q99: The diagram below shows the market for
Q100: Q101: Over the past four decades,Canada's non-residential capital Q103: The Canadian government introduced the Tax-Free Savings Q104: Consider the flow of investment and saving Q105: Ongoing technological improvement over the past four Q106: Consider the flow of investment and saving Q107: The Canadian federal government can encourage a![]()
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents