Question: Use the graph to answer the question that follows. Real rate of interest D2 Quantity of loanable funds Assume that the market for loanable funds

Use the graph to answer the question that follows. Real rate of interest D2 Quantity of loanable funds Assume that the market for loanable funds is in equilibrium at the rate of interest shown at point 'R' and the quantity of loanable funds, 'Q,' as shown in the accompanying graph. If there is an increase in productivity due to technological innovation, then what impact will this have on the demand for loanable funds, ceteris paribus? O The demand for loanable funds will increase, and the demand curve will shift to D2. O The demand for loanable funds will decrease, and the demand curve will shift to D1. O The demand for loanable funds will remain constant, and the demand curve will remain at D. O The demand for loanable funds will become zero, and the demand curve should be vertical in shape. O The demand for loanable funds will infinitely increase, and the demand curve will be horizontal. Next Question 1 (Answered)

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock blur-text-image

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Students Have Also Explored These Related Economics Questions!

Suppose you purchase a part from a supplier for a unit cost of $ 4 with which you assemble red widgets. On average, you use 50,000 units of this part each year. Every time you order this particular...

Which of the following statements about the short-run Phillips curve is true? A. Outward shifts in aggregate demand lead to a Phillips curve that has an inverse relationship between unemployment and...

Question 1(Multiple Choice Worth 2 points) (05.05 MC) Which of the following statements explains the effects of crowding out in an economy over the long run? 0 Public investment will increase, and...

Question 1 Use the graph to answer the question that follows. Real interest S rate D' q q Quantity of loanable funds If the graph above represents a change in the loanable funds market in the United...

If the economy of a country experiences increased capital inflows from abroad due to some favorable economic conditions, then other things being constant, what is the new real interest rate,...

Use this graph to answer the following questions: a. With the shift in the demand for loanable funds, what happens to the equilibrium real interest rate and the equilibrium quantity of loanable...

Question 15 2 pts (05.05 HC) Use the graph to answer the question that follows. Real Interest Rate w o _LD AR S o h Quantity of Funds Which of the following actions could lead to the change shown in...

(06.06 HC) Use the graph to answer the question that follows. Real Interest Rate Demand for Funds Q F2 OF1 Quantity of Funds If the graph above represents the loanable funds market (of dollars) in...

Question 2(Multiple Choice Worth 3 points) (06.06 HC) Use the graph to answer the question that follows. Real interest rate EX q q' Quantity of loanable funds The currency in France is the euro. If...

Use the graph to answer the question that follows. Real interest rate S2 S R2 S1 R R1 D Q2 Q Q1 Quantity of loanable funds

Use the graph to answer the question that follows. Based on the accompanying graph, assuming that the velocity of money is constant, between year 1 and year 2, which of the following statements must...

Can a sole proprietorship be described as a pass-through entity?

On January 1, 2021, Wahoo Company sells equipment for $25,600. The equipment was originally purchased on January 1, 2019 for $46,200. The equipment was estimated to have a useful life of 5 years and...

The differential equation model for two first-order systems in series is x(t)+ 4x(t)+ 3x(t) = u(t), where u(t) is the input of the first system and x(t) is the output of the second system. The...

What lessons can we take away from the Third Reichs efforts to change the laws and legal system of Germany?

What are the ethical theories related to phishing scams? Describe with example.

On January 1, 2021, Red Flash Photography had the following balances: Cash, $31,000; Supplies, $9,900; Land, $79,000; Deferred Revenue, $6,900; Common Stock $69,000; and Retained Earnings, $44,000....

Capers, Inc. is developing its cash budget for the next year. Of Capers's 2019 sales, 20% is for cash, another 60% is collected in the month following sale, and 20% is collected in the second month...

Ming files a harassment claim, and then because her boss makes it extremely difficult for her to continue to work there, she quits. Under the legal premise of _____ , she probably has a case. Group...

9. Take a view or attitude that you hold strongly. Search for information that is opposed to this view or attitude. Discuss.

2. In what way can we say that method affects the result we get?

4. In what way will relationships in a system influence what is reported?