Most of the change from 1980 to 1987 in U.S.net capital outflow as a percent of GDP was due to a(n)
A)decrease in U.S.investment.
B)decrease in U.S.national saving.
C)increase in U.S.investment.
D)increase in U.S.national saving.

Question

Quizplus · Accepted Answer

Net capital outflow is equal to the difference between a country's investments in foreign countries and foreign investments within the country. An increase in net capital outflow means that a country is investing more in foreign countries than the amount it is receiving from foreign investments. A decrease in U.S. national saving would mean that there are fewer funds available for investment within the country, leading to an increase in net capital outflow as investors seek opportunities abroad. Therefore, the correct answer is B, a decrease in U.S. national saving.

Most of the Change from 1980 to 1987 in U