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Suppose the World Had Only Two Countries and Domestic Residents

Question 6

Multiple Choice

Suppose the world had only two countries and domestic residents of country A purchased $50 billion of assets from country B and country B purchased $30 billion of assets from country A.What would the net capital outflows of both countries be?


A) $50 billion for country A and $30 billion for country B
B) $30 billion for country A and $50 billion for country B
C) $20 billion for country A and -$20 billion for country B
D) -$20 billion for country A and $20 billion for country B

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