A technological innovation that increases the marginal physical product of capital would eventually result in a(n)
a. increase in the interest rate
b. decrease in the interest rate
c. shift to the right of the supply curve of loanable funds
d. increase in the quantity demanded of loanable funds and a decrease in the quantity supplied of loanable funds, which leaves the interest rate unchanged
e. shift to the left of the supply curve of loanable funds
A
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In the short run, a federal budget deficit will most likely _____
a. stimulate aggregate supply b. reduce federal debt c. boost economic growth d. reduce national saving e. boost domestic saving
If the expected price level exceeds the actual price level in an economy, _____
a. firms increase production in the short run b. firms decrease production in the short run c. firms maintain production in the short run but increase prices d. firms maintain production in the short run but decrease prices e. firms raise prices in the short run.