Net capital outflow measures
A)foreign assets held by domestic residents minus domestic assets held by foreign residents.
B)the imbalance between the amount of foreign assets bought by domestic residents and the amount of domestic assets bought by foreigners.
C)the imbalance between the amount of foreign assets bought by domestic residents and the amount of domestic goods and services sold to foreigners.
D)None of the above is correct.

Question

Quizplus · Accepted Answer

Net capital outflow measures the imbalance between the amount of foreign assets bought by domestic residents and the amount of domestic assets bought by foreigners. Option A measures net foreign assets, while option C refers to net exports. Option D discards all options, but B is correct.

Net Capital Outflow Measures