Multiple Choice
The combined effect on the loanable funds market of a new technology that increases the marginal physical product of capital and a shift in consumers' preferences for more present consumption is
A) an increase in the interest rate
B) a decrease in the interest rate
C) unclear because each of the effects has an opposite influence on the interest rate
D) an increase in the quantity of loanable funds demanded and supplied on the market
E) a decrease in the quantity of loanable funds demanded and supplied on the market
Correct Answer:
Verified
Correct Answer:
Verified
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