Why does increased productivity of capital shift the demand for loanable funds?

Group of answer choices

More productive capital generates more profits, reducing the need for firms to borrow money.

More productive capital means greater consumption of raw materials, which must be paid for with borrowed money.

More productive capital boosts competition, which leads to greater demand for loans to keep up with rival firms.

More productive capital reduces workers' incentive to work, which leads to greater demand for loans in order to pay workers more.

More productive capital earns more money, which justifies a higher interest rate on money borrowed to buy the capital.