The Introduction of a New Technology That Raises the Marginal

question 69

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.

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Definitions:

Experimental Group

In an experiment, the group of subjects who are exposed to the variable under study, allowing researchers to determine the effect of the variable.

Control Group

In an experiment, the group that does not receive the treatment or intervention being tested, serving as a benchmark to measure how the other tested subjects do.

Field Research

The collection of raw data outside a laboratory, library, or workplace setting, directly from the environment or a specific situation.

Less Artificial

A term that might refer to something being more natural or genuine, lacking artificial enhancements or modifications.