Examlex
Which of the following is a key assumption of functionalism?
Loanable Funds
The funds available for borrowing in the financial markets, involving the lending and borrowing between savers and borrowers, which determines the equilibrium interest rate.
Domestic Investment
The total amount of resources invested in the production of goods and services within a country’s borders.
Net Capital Outflow
The purchase of foreign assets by domestic residents minus the purchase of domestic assets by foreigners.
Net Capital Outflow
The difference between the purchase of foreign assets by domestic residents and the purchase of domestic assets by foreigners; it can be positive (net outflow) or negative (net inflow).
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