In the loanable fund’s theory of interest determination, an increase in the productivity ofcapital equipment should lead to:

A reduction in the amount of saving

In the loanable fund’s theory of interest determination, an increase

1.	In the loanable fund’s theory of interest determination, an increase in the productivity ofcapital equipment should lead to:
A.	A reduction in the amount of saving
B.	More employment
C.	Higher interest rates
D.	Higher prices
Answer» D. Higher prices