A country has net capital outflow of $20 billion. Which of the following is consistent with this net capital outflow?
A)It has $20 billion of net exports.
B)Purchases of domestic assets by foreigners exceed purchases of foreign assets by domestic residents by $20 billion.
C)It's saving is $15 billion and its domestic investment is $5 billion.
D)All of the above are consistent with a net capital outflow of $20 billion.

Question

Quizplus · Accepted Answer

Net capital outflow equals net exports, so a net capital outflow of $20 billion is consistent with having $20 billion of net exports.

A Country Has Net Capital Outflow of $20 Billion