If the quantity of loanable funds supplied is greater than the quantity demanded, what does the excess measure?
A) purchase of domestic investments
B) net capital outflow
C) net capital inflow.
D) foreigners purchase of Canadian goods

Question

Quizplus · Accepted Answer

The excess of loanable funds supplied over the quantity demanded measures net capital outflow, as it indicates that domestic savings exceed domestic investment, leading to the surplus being invested abroad.

If the Quantity of Loanable Funds Supplied Is Greater Than