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If US Residents Purchase $500 Billion of Foreign Assets and Foreigners

Question 66

Multiple Choice

If U.S. residents purchase $500 billion of foreign assets and foreigners purchase $1300 billion of U.S. assets,


A) U.S. net capital outflow is $800 billion; capital is flowing into the U.S.
B) U.S. net capital outflow is $800 billion; capital is flowing out of the U.S.
C) U.S. net capital outflow is -$800 billion; capital is flowing into the U.S.
D) U.S. net capital outflow is -$800 billion; capital is flowing out of the U.S.

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