If a Country Has a Negative Net Capital Outflow,then

question 138

Multiple Choice

If a country has a negative net capital outflow,then

• A)on net it is purchasing assets from abroad.This adds to its demand for domestically generated loanable funds.
• B)on net it is purchasing assets from abroad.This subtracts from its demand for domestically generated loanable funds.
• C)on net other countries are purchasing assets from it.This adds to its demand for domestically generated loanable funds.
• D)on net other countries are purchasing assets from it.This subtracts from its demand for domestically generated loanable funds.

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Definitions:

Straight-Line Method

A depreciation technique that allocates an equal portion of the initial cost of an asset to each year of the asset's useful life.

Depreciation Expense

The annual charge to expense part of the cost of a tangible asset over its expected service life.

Construction Costs

encompass all expenses directly incurred in the physical construction of a building or structure, including materials and labor.

Balance Sheet

A financial statement that provides a snapshot of a company's financial position at a specific point in time, showing assets, liabilities, and shareholders' equity.