Technological Progress That Increases the Expected Profit Shifts the Demand

question 208

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

---

Definitions:

Desirable Behaviors

Actions or conduct considered appealing or appropriate by a group, culture, or society, often encouraged or rewarded.

Reinforce

To strengthen a behavior, action, or concept, usually through repetition or reward.

Punishment

A consequence or penalty given for a perceived misbehavior or infringement, intended to reduce or eliminate that behavior.

Unpleasant Event

An occurrence that is undesirable or causes discomfort.