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If Domestic Residents of Other Countries Purchase $600 Billion of U.S.assets

Question 29

Multiple Choice

If domestic residents of other countries purchase $600 billion of U.S.assets and U.S residents purchase $500 billion of foreign assets,then U.S.net capital outflow is


A) $100 billion and the U.S.has a trade surplus.
B) $100 billion and the U.S has a trade deficit.
C) -$100 billion and the U.S.has a trade surplus.
D) -$100 billion and the U.S.has a trade deficit.

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