If Net Exports Are Negative, Then

question 3

Multiple Choice

If net exports are negative, then

• A) net capital outflow is positive (indicating an inflow of capital), so foreign assets bought by Americans are greater than American assets bought by foreigners.
• B) net capital outflow is positive (indicating an inflow of capital), so American assets bought by foreigners are greater than foreign assets bought by Americans.
• C) net capital outflow is negative (indicating an outflow of capital), so foreign assets bought by Americans are greater than American assets bought by foreigners.
• D) net capital outflow is negative (indicating an outflow of capital), so American assets bought by foreigners are greater than foreign assets bought by Americans.

---

Definitions:

Intense Precipitation

Very heavy rainfall or snowfall that occurs in a short period of time, often leading to flooding.

Global Warming

The long-term rise in the average temperature of the Earth's climate system, largely attributed to human activities like burning fossil fuels.

Flash Flood

A rapid and extreme flow of high water into a normally dry area, or a rapid water level rise in a stream or creek above a specified point, usually due to heavy rain.

Hydrographs

Charts that show the flow rate of water over time in a specific stream, river, or other body of water.