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:

Budget Constraints

Refers to the limitations on the consumption choices of individuals or entities due to their available resources, such as income or wealth.

Indifference Curves

Graphical representations showing combinations of two goods that give the consumer equal satisfaction and utility.

Optimum

The most favorable condition or level of something, where benefits are maximized and negative effects are minimized.

Normal Goods

Normal goods are goods for which demand increases as the income of consumers increases, showing a positive relationship between income and demand.