If U.S. net exports are negative, then net capital outflow is   A.  negative, so American assets bought by foreigners are greater than foreign assets bought by Americans. B.  positive, so foreign assets bought by Americans are greater than American assets bought by foreigners. C.  positive, so American assets bought by foreigners are greater than foreign assets bought by Americans. D.  negative, so foreign assets bought by Americans are greater than American assets bought by foreigners.

Brief Principles of Macroeconomics (MindTap Course List)
8th Edition
ISBN:9781337091985
Author:N. Gregory Mankiw
Publisher:N. Gregory Mankiw
Chapter13: Open-economy Macroeconomics: Basic Concepts
Section: Chapter Questions
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If U.S. net exports are negative, then net capital outflow is
 
A.  negative, so American assets bought by foreigners are greater than foreign assets bought by Americans.
B.  positive, so foreign assets bought by Americans are greater than American assets bought by foreigners.
C.  positive, so American assets bought by foreigners are greater than foreign assets bought by Americans.
D.  negative, so foreign assets bought by Americans are greater than American assets bought by foreigners.
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