Capital inflows in excess of outflows create a deficit in the financial account.

Name: Capital inflows in excess of outflows create a deficit in the financial account.
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Capital inflows in excess of outflows actually create a surplus in the financial account, not a deficit. The financial account measures the net changes in ownership of international assets, and a surplus indicates that a country is receiving more investment from abroad than it is investing overseas.

Capital Inflows in Excess of Outflows Create a Deficit in the Financial