In the loanable funds model, the country’s stock of “investment” comes from: Production firms renting equipment High real interest rates Rental firms purchasing new capital to rent out to production firms Foreign firms
In the loanable funds model, the country’s stock of “investment” comes from: Production firms renting equipment High real interest rates Rental firms purchasing new capital to rent out to production firms Foreign firms
Essentials of Economics (MindTap Course List)
8th Edition
ISBN:9781337091992
Author:N. Gregory Mankiw
Publisher:N. Gregory Mankiw
Chapter18: Savings,investment And The Financial System
Section: Chapter Questions
Problem 5PA
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5. In the loanable funds model, the country’s stock of “investment” comes from:
- Production firms renting equipment
- High real interest rates
- Rental firms purchasing new capital to rent out to production firms
- Foreign firms
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