Industries in Kazakhstan implement new technological innovations in production. What is the effect of this on the loanable funds market?

Question

Quizplus · Accepted Answer

Implementing new technological innovations in production can increase productivity and profitability, which can lead to higher profits and increased savings. This would increase the supply of loanable funds in the market, leading to a decrease in interest rates and an increase in investment opportunities. As a result, the loanable funds market would experience an increase in investment and borrowing activities.

Industries in Kazakhstan Implement New Technological Innovations in Production