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sertanlavr [38]
1 year ago
6

a country has national saving of $50 billion, government expenditures of $30 billion, domestic investment of $10 billion, and ne

t capital outflow of $40 billion. what is its supply of loanable funds? a. $30 billion b. $60 billion c. $50 billion d. $20 billion
Business
1 answer:
zubka84 [21]1 year ago
8 0

The supply of loanable funds is $50 billion. Thus, option c is correct.

The supply of loanable funds considers only national savings( public savings + private savings), thus the supply of funds shall be only $50 billion. The national savings is the rate that measures the amount of income that households, business, and the government saves. It looks at the difference between a nation's income and consumption.

The national savings rate is the GDP that is saved rather than spent in the economy. It is an indicator of a nation's health as it shows the trends in savings.

Hence, option c is correct, that is $50 billion.

Learn more about national savings here brainly.com/question/15109837

#SPJ4

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