Technological Change Can Increase the Demand for Loanable Funds Because

question 174

Multiple Choice

Technological change can increase the demand for loanable funds because it

• A) lowers the interest rate.
• B) can increase the expected profit.
• C) has little effect on production cost.
• D) decreases the need for additional equipment.
• E) increases people's expected future disposable income.

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Definitions:

Imports

Goods or services brought into a country from abroad for sale.

Domestic Market

The supply and demand for goods and services within a country's borders.

Video Games

Electronic games involving interaction with a user interface to generate visual feedback on a device, ranging from consoles to computers.

Pencil Sharpeners

Devices that shave away the wooden surface of a pencil to expose more of the lead, enabling finer writing or drawing.