Multiple Choice
An open economy has GDP of $1,200 billion,consumption expenditures of $900 billion government expenditures of $400 billion,domestic investment of $100 billion,and net exports of -$200 billion.What is its demand for loanable funds?
A) -$200 billion
B) -$100 billion
C) $100 billion
D) $200 billion
Correct Answer:
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