In an open economy, what best identifies the sources of loanable funds?
A) Canadians who consume less than their income and government budget deficit
B) Canadians who consume less than their income and government budget surplus
C) foreigners who buy Canadian bonds and shares of stock and Canadian government surplus
D) foreigners who invest in Canada and Canadian government surplus

Question

Quizplus · Accepted Answer

In an open economy, loanable funds come from domestic savings (Canadians who consume less than their income) and government budget surplus, which adds to the pool of available funds for investment.

In an Open Economy, What Best Identifies the Sources of Loanable