In the open-economy macroeconomic model,the supply of loanable funds comes from
A)the sum of domestic investment and net capital outflow.
B)the sum of national saving and net capital outflow.
C)national saving.
D)net exports

Question

Quizplus · Accepted Answer

In an open-economy macroeconomic model, the supply of loanable funds is derived from national saving. National saving is the portion of a nation's income that is not used for consumption or government spending, and it provides the funds available for investment in the economy.

In the Open-Economy Macroeconomic Model,the Supply of Loanable Funds Comes