If the quantity of loanable funds supplied is greater than the quantity demanded, what are the excess funds used for?
A) Canadians to purchase foreign assets
B) Canadians to purchase domestic investments
C) foreigners to purchase Canadian assets
D) foreigners to purchase Canadian goods

Question

Quizplus · Accepted Answer

When the quantity of loanable funds supplied exceeds the quantity demanded, the excess funds are often used by Canadians to purchase foreign assets, as they seek investment opportunities outside the domestic market.

If the Quantity of Loanable Funds Supplied Is Greater Than