-In the above figure, technological progress that increases the expected profit will
A) shift the demand for loanable funds curve leftward.
B) shift the demand for loanable funds curve rightward.
C) have no effect on the demand for loanable funds curve.
D) make the demand for loanable funds curve become horizontal.

Question

-In the above figure, technological progress that increases the expected profit will
A) shift the demand for loanable funds curve leftward. 
B) shift the demand for loanable funds curve rightward. 
C) have no effect on the demand for loanable funds curve. 
D) make the demand for loanable funds curve become horizontal.

Quizplus · Accepted Answer

Technological progress that increases the expected profit motivates firms to invest more in new technologies and projects. This increases the demand for loanable funds as firms seek more capital to finance their investments, shifting the demand curve for loanable funds rightward.

-In the Above Figure, Technological Progress That Increases the Expected