If USResidents Purchase $600 Billion Worth of Foreign Assets and Foreigners

question 107

Multiple Choice

If U.S.residents purchase $600 billion worth of foreign assets and foreigners purchase $300 billion worth of U.S.assets,

• A)U.S.net capital outflow is $300 billion;capital is flowing into the U.S.
• B)U.S.net capital outflow is $300 billion;capital is flowing out of the U.S.
• C)U.S.net capital outflow is -$300 billion;capital is flowing into the U.S.
• D)U.S.net capital outflow is -$300 billion;capital is flowing out of the U.S.

---

Definitions:

Shotgun-Shell Ammunition

Ammunition specifically designed for use in a shotgun, consisting of a casing filled with shot or a slug.

Future Prices

The anticipated cost of goods, commodities, or services set for delivery and payment at a future date.

Demand

The quantity of a product or service that consumers are willing and able to purchase at various prices.

Complements

Goods that are often used together where an increase in the demand for one leads to an increase in the demand for the other.