Loanable Funds Market And Technology

Question

Technological innovations in the financial sector reduce the costs of processing loans. Which adjustment best represents this change in the loanable funds market?

Accepted Answer

A rightward shift in the supply of loanable funds, which leads to a lower equilibrium real interest rate.

Answer

A leftward shift in the supply of loanable funds, causing a higher equilibrium real interest rate.

Answer

A leftward shift in the demand for loanable funds, leading to a lower equilibrium real interest rate.

Answer

A rightward shift in the demand for loanable funds, resulting in a higher equilibrium real interest rate.