In the open-econony model, the market for loanable funds equates national saving with sum of domestic investment and net capital outflow.
An open-economy is an economy that allows for trade and business transactions among individuals across different countries.
It leads to linkage in economy among countries that are involved.
Therefore, In the open-econony model, the market for loanable funds equates national saving with sum of domestic investment and net capital outflow.
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