In an Open Economy,the Source of the Demand for Loanable

question 26

Multiple Choice

In an open economy,the source of the demand for loanable funds is

• A)national saving
• B)national saving + net capital outflow
• C)investment + the government budget deficit
• D)investment + net capital outflow

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Definitions:

Accounts Receivable

Receivables from customers to a business for commodities or services rendered but payment has not been made yet.

Financing Activities

Actions that involve the inflow or outflow of money to fund a company's operations, expansion, or to settle its obligations.

Issuing Debt

The process by which corporations or governmental entities raise money for operations, investment, or financing by issuing bonds, notes, or other forms of debt instruments to investors.

Lending Money

The act of providing funds to another party with the expectation of being repaid, usually with interest, over a specified period of time.