At the equilibrium real interest rate in the open-economy macroeconomic model,the equilibrium quantity of loanable funds equals
A)net capital outflow.
B)domestic investment.
C)foreign currency supplied.
D)national saving.

Question

Quizplus · Accepted Answer

In the open-economy macroeconomic model, the equilibrium quantity of loanable funds is determined by national saving, which is the sum of private and public saving. National saving provides the funds available for domestic investment and net capital outflow.

At the Equilibrium Real Interest Rate in the Open-Economy Macroeconomic