Wednesday, March 11, 2009

CH 14 PRACTICE PROBLEMS

1) Write the equation for the market for loanable funds in an open economy:


S = I + NCO

2) In an open economy, the supply of loanable funds is determined by :

National saving, the same as in a closed economy

3) In an open economy, the demand for loanable funds is determined by: .

the sum of net capital outflow and domestic investment.