In an Open Economy, Where Does the Demand for Loanable

question 103

Multiple Choice

In an open economy, where does the demand for loanable funds come from?

• A) from those who want to borrow funds to buy domestic capital goods
• B) from those who want to borrow funds to buy foreign assets
• C) from those who want to borrow funds to buy either domestic capital goods or foreign assets
• D) from those who want to borrow funds to buy Canadian bonds or shares of stock in Canadian companies

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