If U.S. residents purchase $450 billion of foreign assets and foreigners purchase $575 billion of U.S. assets, then the U.S. has net capital outflows of -$125 billion and a trade deficit of $125 billion. a. True b. False
Added by Jillian R.
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Net capital outflow = Capital outflow - Capital inflow = Purchase of foreign assets by U.S. residents - Purchase of U.S. assets by foreigners Show more…
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