Which of the following does net capital outflow measure?
A)an imbalance between a country's income and expenditure
B)an imbalance between a country's investment and saving
C)an imbalance between a country's sale of goods and services abroad and buying of foreign goods and services
D)an imbalance between a country's sale of domestic assets abroad and domestic purchase of foreign assets

Question

Quizplus · Accepted Answer

Net capital outflow measures the difference between a country's purchase of foreign assets and the purchase of domestic assets by foreigners. It is the flow of capital from a country to foreign countries. Therefore, option D is the correct answer. Options A, B, and C describe other concepts such as trade balance, national saving, and current account balance, respectively.

Which of the Following Does Net Capital Outflow Measure