Other things the same,the purchase of a U.S.government bond by a resident of Singapore decreases U.S.net capital outflow and increases Singapore's net capital outflow.

Question

Quizplus · Accepted Answer

When a resident of Singapore purchases a U.S. government bond, they are investing in the United States, increasing the demand for U.S. assets and decreasing the net capital outflow from the U.S. At the same time, they are using Singaporean funds to invest in a foreign country, increasing Singapore's net capital outflow. Therefore, both statements are true.

Other Things the Same,the Purchase of a U