A Small Country Is a Net Foreign Borrower and Its

question 127

Multiple Choice

A small country is a net foreign borrower and its demand for loanable funds increases. As a result, the equilibrium quantity of loanable funds used in the country and the countryʹs foreign borrowing .

• A) does not change; does not change
• B) increases; does not change
• C) increases; increases
• D) does not change; increases