Bob,a Greek citizen,opens a restaurant in Chicago.His expenditures
A)increase U.S.net capital outflow and have no affect on Greek net capital outflow.
B)increase U.S.net capital outflow and increase Greek net capital outflow.
C)increase U.S.net capital outflow,but decrease Greek net capital outflow.
D)decrease U.S.net capital outflow,but increase Greek net capital outflow.

Question

Quizplus · Accepted Answer

Bob's investment in the U.S. decreases U.S. net capital outflow because it represents foreign investment into the U.S., while it increases Greek net capital outflow as it represents capital leaving Greece.

Bob,a Greek Citizen,opens a Restaurant in Chicago.His Expenditures