Technological progress that increases expected profit shifts the demand for loanable funds curve

Question

Quizplus · Accepted Answer

Technological progress that increases expected profit shifts the demand for loanable funds curve rightward, indicating that there is an increased demand for loanable funds. This higher demand will push up the real interest rate, resulting in a rightward shift of the supply of loanable funds curve. Therefore, both curves shift rightward, but the increase in the demand for loanable funds will lead to an increase in the real interest rate.

Technological Progress That Increases Expected Profit Shifts the Demand for Loanable