A. A decrease in a country’s net capital outflow shifts the demand for loanable funds to the left
B. An increase in domestic investment shifts the demand for loanable funds to the right
C. An increase in a country’s net capital outflow shifts the supply of loanable funds to the left
D. An increase in a country’s net capital outflow raises its real interest rate
Correct Answer: C. An increase in a country’s net capital outflow shifts the supply of loanable funds to the left ✔
Last Updated: June 11, 2019