Other Things Equal, an Increase in the Productivity of Capital

question 90

Multiple Choice

Other things equal, an increase in the productivity of capital goods will

• A)increase the demand for loanable funds and decrease the equilibrium interest rate.
• B)increase the demand for loanable funds and increase the equilibrium interest rate.
• C)increase the supply of loanable funds and decrease the equilibrium interest rate.
• D)increase the supply of loanable funds and increase the equilibrium interest rate.

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