The market for loanable funds is represented by the equation S = I + NCO. What does NCO stand for?
A)National credit output
B)National capital outflows
C)Net credit output
D)Net capital outflows

Question

Quizplus · Accepted Answer

NCO stands for net capital outflows.
Key Takeaway: At the equilibrium interest rate, the amount that people save is equal to the desired quantities of investment and the net capital outflows. NCO is the imbalance between the purchases and sales of capital assets.

The Market for Loanable Funds Is Represented by the Equation