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Let's Say That You Have a Strong Fear of Flying

question 19

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Let's say that you have a strong fear of flying. To treat this fear, your therapist asks you to imagine entering a plane and fly until you are no longer showing anxiety. Your therapist has just used the technique of


Definitions:

Foreign Assets

Financial assets or investments that are located in a country other than the investor's home country.

Open Economy

An economy that engages in international exchange of goods, services, and capital.

National Saving

The total amount saved by the government, households, and the business sector in an economy.

Net Capital Outflow

The difference between the purchase of domestic assets by foreigners and the purchase of foreign assets by domestic residents over a specific period, reflecting the flow of capital out of and into a country.

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