What imbalance 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 imbalance between a country's sale of domestic assets abroad and domestic purchase of foreign assets. It represents the difference between the amount of money that flows into a country from foreign investments and the amount of money that flows out of a country due to investments made abroad.

What Imbalance Does Net Capital Outflow Measure