If U.S.net exports are positive,then net capital outflow is
A)positive,so foreign assets bought by Americans are greater than American assets bought by foreigners.
B)positive,so American assets bought by foreigners are greater than foreign assets bought by Americans.
C)negative,so foreign assets bought by Americans are greater than American assets bought by foreigners.
D)negative,so American assets bought by foreigners are greater than foreign assets bought by Americans.

Question

Quizplus · Accepted Answer

When U.S. net exports are positive, it means the U.S. is exporting more than it is importing. This results in a net capital outflow, where Americans are buying more foreign assets than foreigners are buying American assets.

If USNet Exports Are Positive,then Net Capital Outflow Is