When net capital outflows are negative,
A) capital inflows are greater than capital outflows.
B) net factor payments must be positive.
C) the current account must be negative.
D) foreign direct investment must be greater than foreign portfolio investment.

Question

Quizplus · Accepted Answer

Negative net capital outflows mean that there is a greater inflow of capital into a country than outflow. This is because net capital outflow is calculated as the difference between capital inflows and outflows. Therefore, if the net capital outflows are negative, it means capital inflows are greater than capital outflows.

When Net Capital Outflows Are Negative