At the equilibrium 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 equal to national saving, as it represents the supply of funds available for investment both domestically and abroad.

At the Equilibrium Interest Rate in the Open Economy Macroeconomic