U.S.corporation Wright Air Conditions borrows funds to build a factory in the U.S.and a factory in Mexico.Borrowing for factories in which location(s)is included in the U.S.demand for loanable funds?
A)only the U.S.
B)only Mexico
C)Mexico and the U.S.
D)neither Mexico nor the U.S.

Question

Quizplus · Accepted Answer

Wright Air Conditions is borrowing funds for two factories, one in the U.S. and the other in Mexico. Therefore, both locations contribute to the U.S. demand for loanable funds.

USCorporation Wright Air Conditions Borrows Funds to Build a Factory