14. The Financial System
Shifts in the Market for Loanable Funds
Multiple Choice
Multiple ChoiceThe scientists at University of Coloralabaska have discovered an insanely efficient teleportation device useful that revolutionized the shipping and delivery industry. How would this invention affect the market for loanable funds?
A
Demand for loanable funds would increase, leading to a higher equilibrium interest rate
B
Demand for loanable funds would increase, leading to a lower equilibrium interest rate
C
Demand for loanable funds would decrease, leading to a higher equilibrium interest rate
D
Demand for loanable funds would decrease, leading to a lower equilibrium interest rate
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