Figure 13-1
-Refer to the Figure13-1.If the world interest rate equals 6 percent,what is the net capital outflow?
A) -$4000
B) -$2000
C) $2000
D) $4000

Question

Figure 13-1 
-Refer to the Figure13-1.If the world interest rate equals 6 percent,what is the net capital outflow?
A) -$4000 
B) -$2000 
C) $2000 
D) $4000

Quizplus · Accepted Answer

Net capital outflow is positive when domestic saving exceeds domestic investment. If the world interest rate is 6 percent and the figure indicates that at this rate, domestic saving is greater than domestic investment by $2000, then the net capital outflow is $2000.

Figure 13-1 -Refer to the Figure13-1.If the World Interest Rate Equals 6