In an open economy, what does the market for loanable funds equate national saving with?
A)domestic investment
B)net capital outflow
C)the sum of national consumption and government spending
D)the sum of domestic investment and net capital outflow

Question

Quizplus · Accepted Answer

In an open economy, the market for loanable funds equates national saving with the sum of domestic investment and net capital outflow. This is because national saving can be used to finance domestic investment or be lent abroad, which is represented by net capital outflow.

In an Open Economy, What Does the Market for Loanable