The Introduction of a New Technology That Raises the Marginal

question 29

Multiple Choice

The introduction of a new technology that raises the marginal product of new capital will:

• A)decrease real interest rates and increase the equilibrium quantity of saving supplied and demanded.
• B)decrease real interest rates and the equilibrium quantity of saving supplied and demanded.
• C)increase real interest rates and the equilibrium quantity of saving supplied and demanded.
• D)increase real interest rates and decrease the equilibrium quantity of saving supplied and demandeD.The introduction of a new technology that raises productivity will shift the demand curve for loanable funds to the right.This increases real interest rates and the quantity of national savings and investment.

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Definitions:

Expectations-Reality Mismatch

A discrepancy between what was anticipated or hoped for and what actually occurs, often leading to dissatisfaction or reevaluation.

Culture Shock

The feeling of disorientation or discomfort that often comes from encountering a foreign culture or significant changes to one’s usual way of life.

Anxiety

A feeling of worry, nervousness, or unease, often about an imminent event or something with an uncertain outcome.

GLOBE Leadership Styles

A framework categorizing various leadership behaviors identified in the Global Leadership and Organizational Behavior Effectiveness research program.