Technological change can increase the demand for loanable funds ...

[big1devin]

Technological change can increase the demand for loanable funds because it
 
  A) decreases the need for additional equipment.
  B) increases people's expected future disposable income.
  C) lowers the interest rate.
  D) has little effect on production cost.
  E) can increase the expected profit.

Question 2

In the figure above, what is the size of the multiplier?
 
  A) 0.25
  B) 2 trillion
  C) 4.0
  D) 0.5 trillion
  E) More information is needed to determine the size of the multiplier.

[leahchrapun]

Answer to Question 1

E

Answer to Question 2

C