Consider the Following Processes: Which Are Never Found to Occur

question 58

Multiple Choice

Consider the following processes: Which are never found to occur?

• A) Only I
• B) Only II
• C) Only III
• D) Only II and III
• E) I, II and III

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Definitions:

Net Capital Outflow

The difference between a country's savings and its domestic investments, representing the amount of money that flows out of the country to invest abroad minus the amount of money that flows into the country from foreign investors.

Net Exports

The value of a country's total exports minus its total imports; a measure of a nation's foreign trade balance.

Net Capital Outflow

The financial discrepancy between home country residents' investments in foreign lands and foreign investors' stakes in domestic assets.

U.S. Net Capital Outflow

The difference between the purchase of foreign assets by residents of the United States and the purchase of U.S. assets by foreigners.