Asked by J’Myaa Tameriaa on May 23, 2024
Verified
State what, if anything, each of the following does to the supply or demand of loanable funds.
a.net capital outflow increases at each interest rate
b.domestic investment increases at each interest rate
c.the government deficit increases
d.private saving increases
Loanable Funds
The Loanable Funds market is a conceptual framework where savers supply funds to borrowers, determining the equilibrium interest rate.
Net Capital Outflow
The difference between the domestic country's purchases of foreign assets and foreign purchases of the domestic country’s assets for a certain period.
Domestic Investment
Financial investments within a country's borders, including purchases of property, plants, and equipment.
- Analyze how government budget deficits, along with investment and savings, influence economic conditions.
Verified Answer
AP
Anileme Portillo-DelgadoMay 26, 2024
Final Answer :
a.
the demand for loanable funds increases
b.
the demand for loanable funds increases
c.
the supply of loanable funds decreases
d.
the supply of loanable funds increases
the demand for loanable funds increases
b.
the demand for loanable funds increases
c.
the supply of loanable funds decreases
d.
the supply of loanable funds increases
Learning Objectives
- Analyze how government budget deficits, along with investment and savings, influence economic conditions.