If a country has negative net capital outflows,then its net exports are
A)positive and its saving is larger than its domestic investment.
B)positive and its saving is smaller than its domestic investment.
C)negative and its saving is larger than its domestic investment.
D)negative and its saving is smaller than its domestic investment.

Question

Quizplus · Accepted Answer

Negative net capital outflows imply that the country is experiencing a net capital inflow, meaning it is borrowing from abroad. This situation typically corresponds to negative net exports, as the country is importing more than it is exporting. Consequently, the country's saving is smaller than its domestic investment.

If a Country Has Negative Net Capital Outflows,then Its Net