2 5 real interest rate 3 2 0 3 + S3 5 Loanable funds S1 D1 Refer to the figure above. If the economy starts at point 0, how would you illustrate the effect of a positive technological shock that increases returns to investment in high-tech industries, by moving to point: S2 D2
2 5 real interest rate 3 2 0 3 + S3 5 Loanable funds S1 D1 Refer to the figure above. If the economy starts at point 0, how would you illustrate the effect of a positive technological shock that increases returns to investment in high-tech industries, by moving to point: S2 D2
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Question
![O
2
5
real interest rate
Refer to the figure above. If the economy starts at point 0, how would you illustrate the effect of a positive technological shock
that increases returns to investment in high-tech industries, by moving to point:
3
S2
S3 S1
3
2
*
5
D1 D2
Loanable funds](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F871bc9f6-b0c1-423f-825b-d287766fac96%2F0087c5a8-133f-40ff-aa5d-6712f728fd74%2Foa5mrsr_processed.png&w=3840&q=75)
Transcribed Image Text:O
2
5
real interest rate
Refer to the figure above. If the economy starts at point 0, how would you illustrate the effect of a positive technological shock
that increases returns to investment in high-tech industries, by moving to point:
3
S2
S3 S1
3
2
*
5
D1 D2
Loanable funds
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