Chapter 14Sample Questions1. In an open economy, the source of supply of loans in the loanable funds market is ________, and the source of demand is ________.a. Investment and Net Capital Outflow, National Savingb. Investment, National Saving and Net Capital Outflowc. National Saving and Net Capital Outflow, Investmentd. National Saving, Investment and Net Capital Outflow2. If Net Capital Outflow increases, the ________ of loans will increase, causing the real domestic interest rate to ________.3. In the Foreign Currency Exchange Market, the supply of dollars comes from ________, and the demand for dollars comes from ________.
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