Net capital outflow measures how many capital goods are:
A) exported from a country.
B) exported from a country, minus how many are imported into the country.
C) imported into a country.
D) imported into a country, minus how many are exported from the country.

Question

Quizplus · Accepted Answer

Net capital outflow measures the difference between how much capital is imported into a country and how much is exported out of the country. Therefore, it is the amount of capital that leaves the country, which is given by the difference between imports and exports of capital goods. Choice D is the correct option because it measures the outflow of capital from a country.

Net Capital Outflow Measures How Many Capital Goods Are