What imbalance does net capital outflow measure?
A) an imbalance between a country's production and expenditure
B) an imbalance between a country's investment and saving
C) an imbalance between a country's sale of goods and services abroad and buying of foreign goods and services
D) an imbalance between a country's sale of domestic assets abroad and domestic purchase of foreign assets

Question

Quizplus · Accepted Answer

Net capital outflow measures the imbalance between a country's sale of domestic assets abroad and domestic purchase of foreign assets. This includes assets like bonds, stocks, and real estate, and reflects the flow of investment funds out of the country.

What Imbalance Does Net Capital Outflow Measure