In the open economy macroeconomic model net capital outflow is equal to the quantity of
A)dollars supplied in the foreign exchange market.
B)dollars demand in the foreign exchange market.
C)funds supplied in the loanable funds market.
D)None of the above is correct.

Question

Quizplus · Accepted Answer

Net capital outflow represents the amount of domestic currency supplied in the foreign exchange market to purchase foreign assets.

In the Open Economy Macroeconomic Model Net Capital Outflow Is