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Use the graph to answer the question that follows. The graph has Quantity of loanable funds along the horizontal axis and Real rate of interest
Use the graph to answer the question that follows. The graph has Quantity of loanable funds along the horizontal axis and Real rate of interest rate along the vertical axis. Three parallel lines labeled D 1, D, and D 2 fall from left to right with D1 located below and to the left of D and D 2 located above and to the right of D. A line segment labeled S rises from left to right intersecting the three parallel line segments. A vertical line is drawn perpendicular to the horizontal axis from the point labeled Q that terminates at the point of intersection of line segments S and D. A horizontal line labeled R is drawn perpendicular to the vertical axis that intersects the slant line segment D at the point corresponding to Q on the horizontal axis. Assume that the market for loanable funds is in equilibrium at the rate of interest shown at point 'R' and the quantity of loanable funds, 'Q,' as shown in the accompanying graph. If there is an increase in productivity due to technological innovation, then what impact will this have on the demand for loanable funds, ceteris paribus? (2 points) The demand
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