-In the above figure, technological progress that increases the expected profit will
A) have no effect on the demand for loanable funds curve.
B) make the demand for loanable funds curve become horizontal.
C) shift the demand for loanable funds curve leftward.
D) shift the demand for loanable funds curve rightward.

Question

-In the above figure, technological progress that increases the expected profit will
A) have no effect on the demand for loanable funds curve. 
B) make the demand for loanable funds curve become horizontal. 
C) shift the demand for loanable funds curve leftward. 
D) shift the demand for loanable funds curve rightward.

Quizplus · Accepted Answer

Technological progress that increases expected profit will lead to more investment opportunities, increasing the demand for loanable funds and shifting the demand curve rightward.

-In the Above Figure, Technological Progress That Increases the Expected