In the open-economy macroeconomic model,the amount of net capital outflow represents the quantity of dollars
A)supplied for the purpose of selling assets domestically.
B)supplied for the purpose of buying foreign assets.
C)demanded for the purpose of buying U.S.net exports of goods and services.
D)demanded for the purpose of importing foreign goods and services.

Question

Quizplus · Accepted Answer

Net capital outflow measures the difference between the amount of money that residents of a country are investing in foreign assets and the amount of foreign money that is invested in domestic assets. Therefore, it represents the quantity of dollars supplied for the purpose of buying foreign assets.

In the Open-Economy Macroeconomic Model,the Amount of Net Capital Outflow