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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 low prices for gasoline, electricity, and...

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 low prices for gasoline, electricity, and other types of energy. What effect would this have on interest rates?
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The lower prices of gasoline, electricity and other types of energy would lead to lower money usage for the basic utilities. Less fund or money is borrowed to import the energy resources. It would lower the loan from the banks and have idle money with banks which will lead to lower the interest rates.

The lowering of the interest rates will lead to lower Interest cost of the Expensive equipment so purchased to make oil out of seawater.

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