A Technological Innovation That Increases the Marginal Physical Product of Capital

Multiple Choice

A technological innovation that increases the marginal physical product of capital wouldeventually 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