A country is running a _____ when the inflow of foreign capital is greater than the outflow of domestic capital to other nations.

Question

Quizplus · Accepted Answer

A capital surplus occurs when a country receives more foreign investment than it is investing in other nations. This can lead to an increase in the country's financial assets and can be beneficial for economic growth. A trade surplus refers specifically to the excess of a country's exports over its imports, while a trade deficit is the opposite. A capital deficit occurs when a country is investing more in other nations than it is receiving in foreign investment.

A Country Is Running a _____ When the Inflow of Foreign