If U.S. purchases of foreign financial assets exceed foreign purchases of U.S. financial assets, then the United States is experiencing which of the following?

Question

Quizplus · Accepted Answer

A net capital outflow occurs when a country purchases fewer foreign financial assets than foreign entities purchase of its own financial assets. This results in a flow of funds out of the country and a decrease in its net foreign assets.

If US Purchases of Foreign Financial Assets Exceed Foreign Purchases of of U.S