Question

Net capital inflows equal:

Select one:

a. capital inflows minus capital outflows.

b. capital outflows minus capital inflows.

c. international production.

d. domestic production.

Answer 1

Net capital inflow is the difference of capital inflows and capital outflows. Likewise net capital outflow is the difference of capital outflow and capital inflow. Note that a negative value of net capital inflow implies a positive value of net capital outflow. Capital flows between nations when there are interest rate differences

Select option A.