Net Capital Outflow Equals the Difference Between a Country's

question 113

Multiple Choice

Net capital outflow equals the difference between a country's

• A)income and expenditure.
• B)investment and saving.
• C)purchases of foreign goods and services and sales of goods and services abroad.
• D)purchases of foreign assets and sales of domestic assets abroad.

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Definitions:

Substitute Product

A product or good that a consumer can use in place of another.

Substitutes

Products or services that can be used in place of each other.

Substitutes

Products or services that can be used in place of one another, where an increase in the price of one leads to an increased demand for the other.

Complements

Goods or services that are used together, where an increase in the consumption of one leads to an increase in the consumption of the other.