A country has private saving of $500 billion, public saving of -$100 billion, domestic investment of $150 billion, and net capital outflow of $250 billion. what is its supply of loanable funds?

Respuesta :

The formula to use is:

Private saving = Public saving + Domestic investment + Net capital outflow + Loanable funds

Substituting the given values:

$500 billion = - $100 billion + $150 billion + $250 billion + Loanable funds

Loanable funds = $200 billion