# Which of the following statements regarding the loanable funds market is not true ? with Answer - Economics Mcqs | TestPrep

> Solved MCQ: Which of the following statements regarding the loanable funds market is not true ? Correct Answer: C. An increase in a country’s net capital outflow shifts the supply of loanable funds to the left. Verified answer explanation for FPSC, PPSC, MDCAT, NTS, and CSS competitive exam preparation.

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# Which of the following statements regarding the loanable funds market is not true ?

Direct Answer & Quick Reference

The correct option is **C. An increase in a country’s net capital outflow shifts the supply of loanable funds to the left**.

A. A decrease in a country’s net capital outflow shifts the demand for loanable funds to the left

B. An increase in domestic investment shifts the demand for loanable funds to the right

C. An increase in a country’s net capital outflow shifts the supply of loanable funds to the left **(Correct Answer)**

D. An increase in a country’s net capital outflow raises its real interest rate

✨ Explain with AI

Verified Key: C. An increase in a country’s net capital outflow shifts the supply of loanable funds to the left
Solved by 4,276+ students

Verified against official examination board answer keys and standard curriculum textbooks.

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*Source: https://test-prep.blog/mcq/which-of-the-following-statements-regarding-the-loanable-funds-market-is-not-tru-36343866-4567-4577-b1d8-63bab871ce0e*
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