In the Open-Economy Macroeconomic Model,the Source of the Supply of Loanable

question 111

Multiple Choice

In the open-economy macroeconomic model,the source of the supply of loanable funds is

• A)personal saving
• B)public saving
• C)public saving + personal saving
• D)public saving + personal saving + net capital outflows

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Definitions:

Mutually Exclusive Projects

Projects where the acceptance of one will automatically exclude the option of accepting the other.

IRR Rule

A guideline for evaluating potential investments wherein an investment is considered acceptable if its internal rate of return exceeds a predefined threshold.

NPV Rule

A principle stating that an investment should be made if its Net Present Value (NPV) is positive, indicating that the project's returns exceed its costs.

Marginal Income Tax Rate

The percentage of tax applied to your income for every dollar that falls within a certain tax bracket.