Figure 32-1
-Refer to Figure 32-1. If the world interest rate equals 4 percent, what is the net capital outflow?
A)$4000
B)$2000
C)-$2000
D)-$4000

Name: Figure 32-1 -Refer to Figure 32-1. If the world interest rate equals 4 percent, what is the net capital outflow? A)$4000 B)$2000 C)-$2000 D)-$4000
Brand: Quizplus
Rating: 4.7 (37 reviews)

Question

Figure 32-1 
-Refer to Figure 32-1. If the world interest rate equals 4 percent, what is the net capital outflow?
A)$4000 
B)$2000 
C)-$2000 
D)-$4000

Quizplus · Accepted Answer

Net capital outflow is equal to domestic investment minus domestic saving. In this figure, domestic saving is $10,000 and domestic investment is $8,000, so net capital outflow is -$2,000.

Figure 32-1 -Refer to Figure 32-1. If the World Interest Rate Equals