When the interest rate increases, people will adjust their precautionary demand for money

Which of the following would shift the supply curve of loanable funds?

a. a change in the marginal physical product of capital b. a change in consumers' preferences for present and future consumption c. an increase in the price of the good produced by capital d. an increase in the interest rate e. a new productivity-improving technology

In some cases, specialization allows larger factories to produce goods at a lower average cost than smaller factories

a. True b. False Indicate whether the statement is true or false