Multiple Choice
If a country has a positive net capital outflow, then
A) on net it is purchasing assets from abroad.This adds to its demand for domestically generated loanable funds.
B) on net it is purchasing assets from abroad.This subtracts from its demand for domestically generated loanable funds.
C) on net other countries are purchasing assets from it.This adds to its demand for domestically generated loanable funds.
D) on net other countries are purchasing assets from it.This subtracts from its demand for domestically generated loanable funds.
Correct Answer:
Verified
Correct Answer:
Verified
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