In the open-economy macroeconomic model,the supply of loanable funds comes from
A)the sum of domestic investment and net capital outflow.
B)net capital outflow alone.
C)domestic investment alone.
D)None of the above is correct.

Question

Quizplus · Accepted Answer

In the open-economy macroeconomic model, the supply of loanable funds comes from national saving, not from domestic investment or net capital outflow alone.

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