Which of the Following Statements Regarding the Loanable Funds Market

question 19

Multiple Choice

Which of the following statements regarding the loanable funds market is not true?

• A) A decrease in a country's net capital outflow shifts the demand for loanable funds to the left.
• B) An increase in domestic investment shifts the demand for loanable funds to the right.
• C) An increase in a country's net capital outflow shifts the supply of loanable funds to the left.
• D) An increase in a country's net capital outflow raises its real interest rate.

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