A Country Imports $20 Billion Worth of Goods and Services

Multiple Choice

A country imports $20 billion worth of goods and services and exports $15 billion worth of goods and services. What is its net capital outflow?

A) ​$5 billion, so its residents' purchases of foreign assests exceed foreigners' purchases of domestic assets
B) $5 billion, so foreigners' purchases of domestic assets exceed its resident's purchases of foreign assets
C) ​-$5 billion, so its residents' purchases of foreign assests exceed foreigners' purchases of domestic assets
D) -$5 billion, so foreigners' purchases of domestic assets exceed its residents' purchases of foreign assets