(Answered) In an open econonyy, the source for the demand for loanable funds isnational swing.national saving…

➤ When does domestic investment alone determine demand for loanable funds?
Domestic investment alone determines demand only if net capital outflow is zero. That occurs in a closed economy or when capital mobility is absent and residents neither buy nor sell foreign assets. In those cases, demand equals domestic investment and the loanable funds market simplifies to the closed-economy model.