A Small Country Is a Net Foreign Borrower and Its

Multiple Choice

A small country is a net foreign borrower and its domestic supply of loanable funds increases.Consequently,the equilibrium quantity of loanable funds used in the country ________ and the country's foreign borrowing ________.

A) does not change; decreases
B) does not change; does not change
C) does not change; increases
D) increases; does not change