-In the Above Figure, the Initial Supply of Loanable Funds

question 133

Multiple Choice

-In the above figure, the initial supply of loanable funds curve is SLF? and the demand for loanable funds investment curve is DLF?. An increase in the real interest rate to 7 percent could be caused by

• A) an increase in investment demand.
• B) a decrease in the expected profit.
• C) an increase in people's disposable incomes.
• D) an expansion that increased both saving and investment by the same amount.

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Definitions:

Domestic Investment

The total amount of money invested within a country’s borders by both the private and public sectors.

Net Capital Outflow

In economic terms, it's the net flow of capital, both monetary and physical, out of a country, taking into account investments abroad minus foreign investments domestically.

National Saving

The total of private and public savings in a country, often considered as the sum of household, business, and government savings.

Domestic Investment

This refers to the total amount of money invested within a country's own borders by both private and public sectors.