If technological breakthroughs in the internet cause large numbers of
If technological breakthroughs in the internet cause large numbers of firms to consider investment projects they hadn’t previously thought of, then
A) a shift in the supply of loanable funds will cause interest rates to rise.
B) a shift in the supply of loanable funds will cause interest rates to fall.
C) a shift in the demand for loanable funds will cause interest rates to rise.
D) a shift in the demand for loanable funds will cause interest rates to fall.
E) there will be an excess supply of loanable funds.
ANSWER
C
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