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
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5. In the loanable funds model, the country’s stock of “investment” comes from:

 

  1. Production firms renting equipment
  2. High real interest rates
  3. Rental firms purchasing new capital to rent out to production firms
  4. Foreign firms
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