In an open economy the supply of loanable funds comes from

Question

Quizplus · Accepted Answer

In an open economy, the supply of loanable funds comes from national saving, which includes both private and public saving. The demand for loanable funds comes from both domestic investment and net capital outflow, as domestic investors may choose to invest abroad and foreign investors may choose to invest in the domestic market. Therefore, option B is the correct answer as it accurately describes the sources of supply and demand for loanable funds in an open economy.

In an Open Economy the Supply of Loanable Funds Comes