Solved: Interest rate-making oil out of seawater, Finance Basics

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Interest rate-making oil out of seawater

Problem:

Suppose a new process was developed that could be used to make oil out of seawater. The equipment required is quite expensive, but it would, in time, lead to very low prices for gasoline, electricity and other types of energy. What effect would this have on interest rates?

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Finance Basics: Interest rate-making oil out of seawater

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