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yaroslaw [1]
3 years ago
15

The economy begins in equilibrium at point E, representing the real interest rate r 1 at which saving S 1 equals desired investm

ent I 1. What will be the new equilibrium combination of real interest rate, saving, and investment if there is a technological innovation that increases the demand for investment goods

Business
1 answer:
andreyandreev [35.5K]3 years ago
4 0

Answer:

hello below is the missing diagram needed for the question

answer : point B

Explanation:

when there is a technological innovation that increases the demand for investment and goods the real interest rate,savings and investment will take a positive outlook i.e take a shift to the right , this is due to the increase in investment and a corresponding increase in demand by consumers

Technological innovation are very vital for the expansion of production by companies and firms who provide either goods or services

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