Capital outflows refer to the purchases of foreign assets by domestic households or firms. This includes investments in foreign stocks, bonds, real estate, and other financial instruments. Capital outflows can have a significant impact on the domestic economy, affecting the exchange rate, interest rates, and overall economic growth.

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Capital Outflows Are

Question 121

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Capital outflows are

A) purchases of domestic goods or services by foreign households or firms.
B) purchases of domestic assets by foreign households or firms.
C) purchases of foreign goods or services by domestic households or firms.
D) purchases of foreign assets by domestic households or firms.
E) purchases of domestic assets by domestic households or firms.

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