In the open-economy macroeconomic model, the market for loanable funds equates national saving with:
a. Domestic investment.
b. National consumption minus domestic investment.
c. Net capital outflow.
d. None of the above.

One of the main trends in economics in recent years has been to move away from models that focus on the operation of closed systems and to place a lot of emphasis on the need to explore the many inter linkages that occur between economies. This is not to say that standard macro analysis overlooks these connections; in fact, many older textbooks on macroeconomics and international economics include ideas like the multiplier for foreign commerce. However, it is only recently that this and related information has been presented as "open-economy macroeconomics."

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In the open-economy macroeconomic model, the market for loanable funds equates national saving with: a. Domestic investment. b. National consumption minus domestic investment. c. Net capital outflow. d. None of the above.

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In the open-economy macroeconomic model, the market for loanable funds equates national saving with:
a. Domestic investment.
b. National consumption minus domestic investment.
c. Net capital outflow.
d. None of the above.