πŸ“Š Financial Markets and Institutions
Q. In the loanable fund’s theory of interest determination, an increase in the productivity of capital equipment should lead to:
  • (A) A reduction in the amount of saving
  • (B) More employment
  • (C) Higher interest rates
  • (D) Higher prices
πŸ’¬ Discuss
βœ… Correct Answer: (C) Higher interest rates

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