If USResidents Purchase $600 Billion Worth of Foreign Assets and Foreigners

question 107

Multiple Choice

If U.S.residents purchase $600 billion worth of foreign assets and foreigners purchase $300 billion worth of U.S.assets,

• A)U.S.net capital outflow is $300 billion;capital is flowing into the U.S.
• B)U.S.net capital outflow is $300 billion;capital is flowing out of the U.S.
• C)U.S.net capital outflow is -$300 billion;capital is flowing into the U.S.
• D)U.S.net capital outflow is -$300 billion;capital is flowing out of the U.S.

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