Technological Progress That Increases the Expected Profit Shifts the Demand

question 71

Multiple Choice

Technological progress that increases the expected profit shifts the demand for loanable funds curve

• A) rightward and reduces the real interest rate.
• B) leftward and reduces the real interest rate.
• C) leftward and increases the real interest rate.
• D) rightward and increases the real interest rate.

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Definitions:

Price Ceiling

A Price Ceiling is a government-imposed limit on how high a price can be charged for a product, intended to protect consumers from exorbitant prices.

Supply Curve

A graph showing the relationship between the quantity of a good that producers are willing to sell and the price of the good.

Gasoline

A petroleum-derived flammable liquid primarily used as fuel in internal combustion engines.

Tax Per Unit

A levy imposed by a government on each unit of goods or services sold.