If net capital outflow is positive, then:
A) exports must be positive.
B) exports must be negative.
C) the trade balance must be positive.
D) the trade balance must be negative.

Question

Quizplus · Accepted Answer

When net capital outflow is positive, it means that a country is investing more abroad than it is receiving from foreign investments. This typically corresponds with a trade surplus, where exports exceed imports, hence the trade balance is positive.

If Net Capital Outflow Is Positive, Then