Business, 19.10.2020 03:01 nathaniel12

7. Suppose that several new technological innova- tions result in greater capital productivity in the
U. S. economy. We know that these innovations
have several macroeconomic effects. Let's
concentrate on the changes in the loanable funds
market and assume no other changes occur.
a. On a sheet of paper, draw the loanable funds
market in initial equilibrium. Be sure to label
all curves and axes correctly.
b. On your graph, illustrate how the technological
innovations affect the loanable funds market.
C. Assuming no other changes in the loanable
funds market, state how these technological
innovations affect the interest rate, the equilib-
rium level of investment, and future GDP.
??

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