Asked by J’Myaa Tameriaa on May 23, 2024

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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.
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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