A Country Has Private Saving of $100 Billion,public Saving of -$30

question 14

Multiple Choice

A country has private saving of $100 billion,public saving of -$30 billion,domestic investment of $50 billion,and net capital outflow of $20 billion.What is its supply of loanable funds?

• A)$50 billion
• B)$70 billion
• C)$90 billion
• D)$120 billion

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Definitions:

Maturity Date

The specific date on which the principal or final payment of a debt instrument is due to be paid to the investors or lenders.

Nominal Rate

The interest rate stated on a bond or loan agreement without adjustment for inflation.

Current Yield

A bond's annual interest payment divided by its current price, indicating the return an investor would expect if the bond is held for a year.