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19 February, 10:10

A country has private saving of $500 billion, public saving of - $100 billion, domestic investment of $150 billion, and net capital outflow of $250 billion. what is its supply of loanable funds?

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  1. 19 February, 10:23
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    The formula to use is:

    Private saving = Public saving + Domestic investment + Net capital outflow + Loanable funds

    Substituting the given values:

    $500 billion = - $100 billion + $150 billion + $250 billion + Loanable funds

    Loanable funds = $200 billion
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