If a country has a net capital inflow, it means they have:
A) a trade surplus.
B) a trade deficit.
C) more exports than imports.
D) more capital goods flowing into their country than out of it.

Question

Quizplus · Accepted Answer

A net capital inflow indicates that a country is borrowing more from the rest of the world than it is lending, which typically corresponds to a trade deficit, where imports exceed exports.

If a Country Has a Net Capital Inflow, It Means