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champagnewolf253Lv1

11 Dec 2019

In a large open economy, what is the source of the demand for loanable funds?

a. Net foreign investment and investment

b. National saving and investment

c. Investment

d. Net foreign investment

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Mahe AlamLv10

5 Apr 2021

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Related textbook solutions

Principles of Economics

2nd Edition, 2017

ISBN: 9781947172364

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Related questions

In an open economy, national saving equals domestic investment

A. Minus the net exports of goods and services.

B. Plus the government's budget deficit.

C. Minus foreign portfolio investment.

D. Plus the net outflow of capital abroad.

In an open economy, national saving equals domestic investment:

(i) plus the net outflow of capital abroad.

(ii) minus the net exports of goods and services.

(iii) plus the government's budget deficit.

(iv) minus foreign portfolio investment.

What occurs when the loanable funds market is in equilibrium?

A. savings = investment

B. exports = imports

C. foreign investment = domestic investment

D. inflation rate = interest rate

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