In a large open economy, what is the source of the demand for loanable funds?.

Answer

The source of the demand for loanable funds in a large open economy is primarily domestic investment and international borrowing, which may be used for productive investment in the domestic country, or to purchase goods and services from abroad. Additionally, government borrowing may also contribute to the demand for loanable funds.

Q: What is a loanable fund? A: A loanable fund is the money available to be loaned out to borrowers.
Q: What is a large open economy? A: A large open economy is an economy that trades goods and services with other countries, and allows capital to flow freely across its borders.
Q: What is the source of the demand for loanable funds in a large open economy? A: In a large open economy, the source of the demand for loanable funds is primarily domestic investment and international borrowing, which may be used for productive investment in the domestic country, or to purchase goods and services from abroad. Additionally, government borrowing may also contribute to the demand for loanable funds.