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In an Open Economy, Where Does the Demand for Loanable

Question 103

Multiple Choice

In an open economy, where does the demand for loanable funds come from?


A) from those who want to borrow funds to buy domestic capital goods
B) from those who want to borrow funds to buy foreign assets
C) from those who want to borrow funds to buy either domestic capital goods or foreign assets
D) from those who want to borrow funds to buy Canadian bonds or shares of stock in Canadian companies

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