A technological breakthrough that increases the marginal ...

[SO00]

A technological breakthrough that increases the marginal productivity of capital would increase the
 a. demand for loanable funds, leading to a lower equilibrium market interest rate
  b. supply of loanable funds, leading to a lower equilibrium market interest rate
  c. demand for loanable funds, leading to a higher equilibrium market interest rate
  d. supply of loanable funds, leading to a higher equilibrium market interest rate
  e. supply of loanable funds but have no impact on the equilibrium market interest rate

Question 2

Which of the following would contribute, directly or indirectly, to a deficit in the capital account of the U.S. balance of payments?
 a. A British citizen buys stock in Ford.
  b. A British citizen buys a bond from Ford.
  c. Interest rates fall in the United States relative to their level in the rest of the world.
  d. Australian publisher Rupert Murdoch buys The New York Times.
  e. Developing countries become more stable and so borrow less from U.S. banks.

[af]

Answer to Question 1

C

Answer to Question 2

C

[SO00]

Correct answers!

[af]

Great! Please up vote