In the open-economy market for loanable funds, the demand for loanable funds comes from A. domestic...

In the open-economy market for loanable funds, the demand for loanable funds comes from

A. domestic investment

B. the sum of domestic investment and net capital outflow

C. net capital outflow

D. national savings

Solutions

Expert Solution

Option B

B. the sum of domestic investment and net capital outflow

The demand for loanable funds comes from domestic investment and investment abroad. The net capital outflow means the investment abroad minus foreigners investment in the country.

Rahul Sunny answered 1 year ago

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