When Net Capital Flows Are Negative

question 184

Multiple Choice

When net capital flows are negative

• A)capital inflows are less than capital outflows.
• B)net foreign investment is negative.
• C)capital outflows are less than capital inflows.
• D)A and B are both correct.

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Definitions:

Depletion

The allocation of the cost of wearing down or using up natural resources over the period they are extracted or consumed.

Natural Resources

Materials or substances such as minerals, forests, water, and fertile land that occur in nature and can be used for economic gain.

Commercial Substance

A characteristic of a transaction indicating that it will result in a significant change in the economic circumstances of a business.

Future Cash Flows

The amount of money that is expected to be received or paid out by a business in the future.