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A Country Has Net Capital Outflow of $40 Billion

Question 103

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A country has net capital outflow of $40 billion.Which of the following is consistent with this net capital outflow?


A) It has -$40 billion of net exports.
B) Purchases of foreign assets by domestic residents exceed purchases of domestic assets by foreign residents by $40 billion.
C) Its saving is $35 billion and its domestic investment is $5 billion.
D) All of the above are consistent with a net capital outflow of $40 billion.

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