Question

A country has national saving of $50 billion, government expenditures of $20 billion, domestic investment of $10 billion, and net capital outflow of $40 billion. What is its supply of loanable funds?

-$70 billion

-$50 billion

-$40 billion

-$30 billion

Answer 1

$50 billion

Step-by-step explanation:

We know that

Supply of loanable funds = Public saving + private saving

And the Public saving + private saving is also known as national saving

In mathematically,

National saving = Public saving + private saving

So the supply of loanable funds is $50 billion

The other information which is mentioned is not considered. Hence, ignored it