Question

If a country has a trade surplus a it has negative net exports and negative net capital outflow. b it has positive net exports and positive net capital outflow. c it has positive net exports and negative net capital outflow. d it has negative net exports and positive net capital outflow.

Answer 1

Answer:

b it has positive net exports and positive net capital outflow

Explanation:

Trade surplus occurs when exports exceeds import.

It is when the difference between export and import is postive

Export is the goods and services sent abroad by a country.

Import is the goods and services A country receives from abroad.

Net capital outflow is the net flow of funds invested abroad by a country. When net capital outflow is positive, it means that the money a country sends abroad exceeds the money it receives from abroad. It follows that when there's a trade surplus, net capital outflow is positive.

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