SOLVED

 16. In the open-economy macroeconomic model, the supply of loanable funds comes from a. national saving. Demand comes from only domestic investment. b. national saving. Demand comes from domestic investment and net capital outflow. c. Only net capital outflow. Demand for loanable funds comes from national saving. d. domestic investment and net capital outflow. Demand for loanable funds comes from national saving.  17. In the open-economy macroeconomic model, the purchase of a capital asset adds to the demand for loanable funds a. only if the asset is located at home. b. only if the asset is located abroad. c. whether the asset is located at home or abroad. d. None of the above is correct.  18. If a country has a positive net capital outflow, then a. on net it is purchasing assets from abroad. This adds to its demand for domestically generated loanable funds. b. on net it is purchasing assets from abroad. This subtracts from its demand for domestically generated loanable funds. c. on net other countries are purchasing assets from it. This adds to its demand for domestically generated loanable funds. d. on net other countries are purchasing assets from it. This subtracts from its demand for domestically generated loanable funds.  19. U.S. corporation Well’s Petroleum borrows money to build an oil well in Texas and to build another in Venezuela. Borrowing for which well is included in the demand for loanable funds in the U.S.? a. The U.S. and Venezuela. b. The U.S. only. c. Venezuela only. d. Neither the U.S. or Venezuela.  20. U.S. corporation Titan Bikes borrows funds to build a factory in the U.S. and a factory in Denmark. Borrowing for factories in which location(s) is included in the U.S. demand for loanable funds? a. The U.S. only. b. Denmark only. c. The U.S. and Denmark. d. Neither the U.S. nor Denmark.  Â