A Technological Breakthrough That Increases the Marginal Productivity of Capital

question 116

Multiple Choice

A technological breakthrough that increases the marginal productivity of capital would increase the

• A)demand for loanable funds, leading to a lower equilibrium market interest rate
• B)supply of loanable funds, leading to a lower equilibrium market interest rate
• C)demand for loanable funds, leading to a higher equilibrium market interest rate
• D)supply of loanable funds, leading to a higher equilibrium market interest rate
• E)supply of loanable funds but have no impact on the equilibrium market interest rate

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Definitions:

Adjusting Entry

A journal entry made in the accounting records at the end of an accounting period to allocate income and expenditures to the period in which they actually occurred.

Supplies Used

The cost of materials and supplies consumed during an accounting period in the course of operations.

Supplies Account

An account used in accounting to track the cost of supplies spent over a specific period.