Which of the Following Best Defines Net Capital Outflow

question 86

Multiple Choice

Which of the following best defines net capital outflow?

• A)It is the purchase of foreign assets by domestic residents minus the purchase of domestic assets by foreign residents.
• B)It is the purchase of foreign assets by domestic residents minus the purchase of foreign goods and services by domestic residents.
• C)It is the purchase of domestic assets by foreign residents minus the purchase of domestic goods and services by foreign residents.
• D)It is the purchase of domestic assets by foreign residents minus the purchase of foreign assets by domestic residents.

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Definitions:

Set Notation

A system of symbols and terminology used to define and describe sets and their relationships in mathematics.

Absolute Value Inequality

An inequality that involves the absolute value of a variable or expression, comparing it to a number.

Absolute Values

The distance of a number from zero on the number line, disregarding the sign of the number.

Equation

A mathematical declaration affirming that two expressions hold equal values.