Loanable Funds Market And Technology
Technological innovations in the financial sector reduce the costs of processing loans. Which adjustment best represents this change in the loanable funds market?
A
A rightward shift in the demand for loanable funds, resulting in a higher equilibrium real interest rate.
B
A leftward shift in the demand for loanable funds, leading to a lower equilibrium real interest rate.
C
A leftward shift in the supply of loanable funds, causing a higher equilibrium real interest rate.
D
A rightward shift in the supply of loanable funds, which leads to a lower equilibrium real interest rate.
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