Net capital outflow equals the difference between a country's
A)income and expenditure.
B)investment and saving.
C)buying 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 is the difference between purchases of foreign assets and sales of domestic assets abroad. This includes foreign direct investment, portfolio investment, and foreign aid. It represents the amount of domestic currency that is being invested abroad, which can have implications for exchange rates and economic growth. The other options (A, B, and C) refer to different components of a country's national income accounting identity, but do not specifically relate to net capital outflow.

Net Capital Outflow Equals the Difference Between a Country's