A small country is a net foreign borrower and its supply of loanable funds increases. As a result, the equilibrium quantity of loanable funds used in the country and the countryʹs foreign borrowing .
A) increases; does not change
B) does not change; increases
C) does not change; does not change
D) does not change; decreases

Question

Quizplus · Accepted Answer

The Answer of A small country is a net foreign borrower and its supply of loanable funds increases. As a result, the equilibrium quantity of loanable funds used in the country and the countryʹs foreign borrowing .
A) increases; does not change
B) does not change; increases
C) does not change; does not change
D) does not change; decreases

A Small Country Is a Net Foreign Borrower and Its