Net capital outflow
A)is always greater than net exports.
B)is always less than net exports.
C)is always equal to net exports.
D)could be greater than, less than, or equal to net exports.

Question

Quizplus · Accepted Answer

Net capital outflow is always equal to net exports because they represent two sides of the same transaction in an open economy: the purchase of foreign assets by domestic residents minus the purchase of domestic assets by foreigners.

Net Capital Outflow