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

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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

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1 answer:

zubka84 [21] · Answer 1 · 2024-05-14T01:57:21+03:00

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

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