Use the following to answer questions:
-(Figure: International Capital Flows) Refer to Figure: International Capital Flows. At an interest rate of 4%, the excess of loanable funds supplied by _____ lenders will be exported to _____ borrowers.

Question

Use the following to answer questions: 
-(Figure: International Capital Flows) Refer to Figure: International Capital Flows. At an interest rate of 4%, the excess of loanable funds supplied by _____ lenders will be exported to _____ borrowers.

Quizplus · Accepted Answer

At an interest rate of 4%, the supply of loanable funds exceeds demand for loanable funds in the U.K. This excess of loanable funds will be exported to the U.S. where the demand for loanable funds exceeds supply at the given interest rate. Therefore, British lenders will export funds to U.S. borrowers.

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