Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Transcribed Image Text:1. Introduction to the loanable funds Market
In a large open economy, what is the source of the demand for loanable funds?
Net foreign investment
Net foreign investment and investment
Investment
National saving and investment
Expert Solution

Step 1
Demand for loans depends on supply and need in the market. If demand is more interest rate tends to rise upwards.5
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