In the Open-Economy Macroeconomic Model,the Market for Loanable Funds Equates

question 106

Multiple Choice

In the open-economy macroeconomic model,the market for loanable funds equates national saving with

• A)domestic investment.
• B)net capital outflow.
• C)national consumption minus domestic investment.
• D)None of the above is correct.

---

Definitions:

Promissory Note

A written, legally binding document in which one party promises to pay another a definite sum of money either on demand or at a specified future date.

Certificate Of Deposit

A Certificate of Deposit (CD) is a financial product offered by banks and credit unions that provides an interest rate premium in exchange for the customer agreeing to leave a lump-sum deposit untouched for a predetermined period of time.

Multiple Endorsements

Refers to the practice in banking and finance where a document, such as a check, is signed over to another party multiple times.

Liable

Being legally responsible for something, typically referring to obligations in law.