In an Open Economy, What Best Identifies the Sources of Loanable

question 158

Multiple Choice

In an open economy, what best identifies the sources of loanable funds?

• A) Canadians who consume less than their income and government budget deficit
• B) Canadians who consume less than their income and government budget surplus
• C) foreigners who buy Canadian bonds and shares of stock and Canadian government surplus
• D) foreigners who invest in Canada and Canadian government surplus

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Definitions:

Inventories

Quantifiable goods or materials held by a company for the purpose of sale in the ordinary course of business, production, or use in creating goods and services.

Depreciable Asset

An asset that decreases in value over time due to use, wear and tear, or obsolescence and can be written off against income.

Useful Life

The estimated period over which an asset is expected to be usable by an entity, or the number of production or similar units expected to be obtained from the asset by an entity.