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.
Correct Answer:

Verified
Correct Answer:
Verified
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