A country has a net capital outflow of $650 billion and domestic investment of $110 billion. What is the quantity of loanable funds demanded?
A)$110 billion
B)$650 billion
C)$540 billion
D)$760 billion

Question

Quizplus · Accepted Answer

The quantity of loanable funds demanded is the sum of domestic investment and net capital outflow, which is $110 billion + $650 billion = $760 billion.

A Country Has a Net Capital Outflow of $650 Billion