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Ford Motor Corporation Is Considering Purchasing New Technology That Will

Question 134

Multiple Choice

Ford Motor Corporation is considering purchasing new technology that will increase productivity by twenty percent. If Ford Motor Corporation decides to make this investment at the going real interest rate, then


A) the demand for loanable funds increases.
B) the quantity of loanable funds demanded increases.
C) the supply of loanable funds increases.
D) saving increases.
E) Ford's profits will decline.

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