Question

Net capital outflow equals a. the value of foreign assets purchased by domestic residents - the value of domestic assets purchased by foreigners. b. the value of domestic assets purchased by foreigners. c. the value of foreign assets purchased by domestic residents. d. the value of domestic assets purchased by foreigners - the value of foreign assets purchased by domestic residents.

Answer 1

Answer:

The correct answer is option a.

Explanation:

Net capital outflow can be defined as the net flow of the capital invested  abroad  by the residents of a country in a given time period, generally a year.

It is calculated by deducting the value of domestic assets purchased by foreigners from the value of foreign assets acquired by the domestic residents.

So, we can say that option a is the correct answer.