A Country Has Private Saving of $500 Billion,public Saving of -$100

question 122

Multiple Choice

A country has private saving of $500 billion,public saving of -$100 billion,domestic investment of $150 billion,and net capital outflow of $250 billion.What is its supply of loanable funds?

• A)$650 billion
• B)$600 billion
• C)$400 billion
• D)$350 billion

---

Definitions:

Production Function

A mathematical representation of the relationship between input factors of production and the output of goods or services.

Marginal Product

The additional output that is produced as a result of using one more unit of a particular input, while keeping other inputs constant.

Marginal Product

The additional output resulting from the use of one more unit of a productive input, holding other inputs constant.

Production Function

An equation that describes the maximum output of a good achieved from a given number of inputs.