Net capital outflow equals the purchase of
A)foreign assets by domestic residents.
B)domestic assets by foreign residents.
C)domestic assets by foreign residents - the purchase of foreign assets by domestic residents
D)foreign assets by domestic residents - the purchase of domestic assets by foreign residents

Question

Quizplus · Accepted Answer

Net capital outflow is the difference between the purchase of foreign assets by domestic residents and the purchase of domestic assets by foreign residents. Therefore, option D is the correct choice as it represents the net capital outflow.

Net Capital Outflow Equals the Purchase of