A country has national saving of $100 billion,government expenditures of $30 billion,domestic investment of $80 billion,and net capital outflow of $20 billion.What is its demand for loanable funds?
A)$60 billion
B)$70 billion
C)$100 billion
D)$120 billion

Question

Quizplus · Accepted Answer

The demand for loanable funds is equal to domestic investment plus net capital outflow, which is $80 billion + $20 billion = $100 billion.

A Country Has National Saving of $100 Billion,government Expenditures of $30