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:

Phrenology

A now-discredited theory that suggested the bumps on the skull could predict mental traits or character.

Localization of Function

The concept in neurology and psychology that specific parts of the brain are responsible for specific functions or behaviors.

Doctrine of Specific Nerve Energies

A principle in neuroscience that suggests each sensory nerve pathway produces its own specific type of sensation, regardless of how it is stimulated.

Mitosis

A type of cell division that results in two daughter cells each having the same number and kind of chromosomes as the parent nucleus, typical of ordinary tissue growth.