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Economics
MEDIUM
ENGLISH
Economics
Which of the following statements regarding the loanable funds market is not true ?
A
A decrease in a country’s net capital outflow shifts the demand for loanable funds to the left
Option A
B
An increase in domestic investment shifts the demand for loanable funds to the right
Option B
An increase in a country’s net capital outflow shifts the supply of loanable funds to the left
Correct answer
D
An increase in a country’s net capital outflow raises its real interest rate
Option D
Correct answer: C
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