Holding Other Factors Constant, If New Technology Becomes Available That

question 65

Multiple Choice

Holding other factors constant, if new technology becomes available that allows machines to produce manufactured goods more quickly and with fewer defects, then the real interest rate will ________ and the equilibrium quantity of national saving and investment will ________.

• A)increase; increase
• B)increase; decrease
• C)increase; not change
• D)decrease; increase

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Definitions:

Budgeted Income Statement

A forecasted financial statement estimating a company's revenues, expenses, and net income for a future period based on a set of assumptions.