A Country Has Net Capital Outflow of $20 Billion

question 432

Multiple Choice

A country has net capital outflow of $20 billion. Which of the following is consistent with this net capital outflow?

• A)It has $20 billion of net exports.
• B)Purchases of domestic assets by foreigners exceed purchases of foreign assets by domestic residents by $20 billion.
• C)It's saving is $15 billion and its domestic investment is $5 billion.
• D)All of the above are consistent with a net capital outflow of $20 billion.

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Definitions:

Consumer Surplus

The divergence in the anticipated price for a good or service by consumers and the actual price they pay.

Willingness to Pay

The maximum amount a consumer is prepared to spend on a good or service, reflecting the perceived value of the good or service to the consumer.

Next-Best Alternative

The best option available to someone after the top choice is taken away, frequently referenced in the context of opportunity cost.

Willie Nelson

A renowned American musician, actor, and activist, known for his contributions to country music.