When a country's inflow of foreign capital is less than its outflow of domestic capital to other countries,then the country runs a:

Question

Quizplus · Accepted Answer

When a country's outflow of domestic capital to other countries is more than its inflow of foreign capital, it is said to have a capital deficit. This means that the country is investing more capital in foreign countries than it is receiving from them. It can lead to a decrease in foreign reserves and can also affect the country's ability to finance its own development projects.

When a Country's Inflow of Foreign Capital Is Less Than