Which statement best defines net capital outflow?
A) It is the purchase of foreign assets by domestic residents minus the purchase of domestic assets by foreign residents.
B) It is the purchase of foreign assets by domestic residents minus the purchase of foreign goods and services by domestic residents.
C) It is the purchase of domestic assets by foreign residents minus the purchase of domestic goods and services by foreign residents.
D) It is the purchase of domestic assets by foreign residents minus the purchase of foreign assets by domestic residents.

Question

Quizplus · Accepted Answer

Net capital outflow is defined as the purchase of foreign assets by domestic residents minus the purchase of domestic assets by foreign residents. This measures the flow of funds for investment abroad by a country's residents compared to the investment from abroad into the country.

Which Statement Best Defines Net Capital Outflow