Net capital outflow equals the difference between a country's
A)income and expenditure.
B)investment and saving.
C)purchases of foreign goods and services and sales of goods and services abroad.
D)purchases of foreign assets and sales of domestic assets abroad.

Question

Quizplus · Accepted Answer

Net capital outflow measures the difference between a country's purchases of foreign assets and sales of domestic assets abroad. Option A refers to current account balance, option B is national saving, and option C is the trade balance.

Net Capital Outflow Equals the Difference Between a Country's