The introduction of a new technology that raises the marginal product of new capital will:
A) decrease real interest rates and increase the equilibrium quantity of saving supplied and demanded.
B) decrease real interest rates and the equilibrium quantity of saving supplied and demanded.
C) increase real interest rates and the equilibrium quantity of saving supplied and demanded.
D) increase real interest rates and decrease the equilibrium quantity of saving supplied and demandeD.The introduction of a new technology that raises productivity will shift the demand curve for loanable funds to the right.This increases real interest rates and the quantity of national savings and investment.
Correct Answer:
Verified
Q122: Crowding out is the tendency for increased
Q124: Holding other factors constant, if a tax
Q125: Holding other factors constant, if terrorist attacks
Q130: Holding other factors constant, if employers automatically
Q132: Holding other factors constant, if the income
Q133: Holding other factors constant, if new technology
Q135: Holding other factors constant, if a change
Q137: The introduction of new technologies _ the
Q138: As the real interest rate decreases, the
Q143: At the national level, higher saving rates
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