Suppose the World Had Only Two Countries and Domestic Residents

question 6

Multiple Choice

Suppose the world had only two countries and domestic residents of country A purchased $50 billion of assets from country B and country B purchased $30 billion of assets from country A.What would the net capital outflows of both countries be?

• A)$50 billion for country A and $30 billion for country B
• B)$30 billion for country A and $50 billion for country B
• C)$20 billion for country A and -$20 billion for country B
• D)-$20 billion for country A and $20 billion for country B

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