If a Country Has a Positive Net Capital Outflow, Then

question 156

Multiple Choice

If a country has a positive 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:

Direct Labor Dollars

The cost of labor that can be directly attributed to the production of goods or services.

Indirect Labor

The wages of employees who are not directly involved in producing goods but support the production process, such as maintenance staff and supervisors.

Cost of Production

The total expense incurred in manufacturing a product or providing a service, including raw materials, labor, and overhead costs.

Raw Materials

The basic, unprocessed or partially processed materials used to produce goods and finished products in manufacturing.