A Technological Breakthrough That Increases the Marginal Productivity of Capital

question 115

Multiple Choice

A technological breakthrough that increases the marginal productivity of capital will 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:

Compressed Workweek

A work schedule that allows an employee to work a full number of hours per week but in fewer days.

Flexible Work Arrangements

Employment terms that allow workers to vary their work schedule, location, or hours to better fit their personal needs or preferences.

Telework Centre

A facility offering equipment and services to allow individuals to work remotely, often used by employees to avoid long commutes.

Telecommuting

A system by which employees are able to work at remote locations but stay in touch with their offices through the use of information and communication technology.