If Spain has a positive capital inflow, what does this signify?
A) Nothing.
B) That the government is running a budget deficit.
C) That more funds were invested in Spain by foreigners than Spain invested abroad.
D) That Spain is running a trade surplus.

Question

Quizplus · Accepted Answer

A positive capital inflow means that more foreign funds were invested in Spain than Spain invested abroad. This indicates that there is foreign interest in the Spanish market and that foreign investors have confidence in Spain's economy. It does not necessarily signify anything about the government's budget deficit or the country's trade surplus.

If Spain Has a Positive Capital Inflow, What Does This