suppose a country's net capital outflow does not change, but its investment rises by $250 billion. its saving must have a. fallen by $250 billion, so its net exports have fallen. b. fallen by $250 billion, but its net exports are unchanged. c. risen by $250 billion, so its net exports have risen. d. risen by $250 billion, but its net exports are unchanged.

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17-12-2022
Business

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suppose a country's net capital outflow does not change, but its investment rises by $250 billion. its saving must have a. fallen by $250 billion, so its net exports have fallen. b. fallen by $250 billion, but its net exports are unchanged. c. risen by $250 billion, so its net exports have risen. d. risen by $250 billion, but its net exports are unchanged.

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Parrain Parrain · Answer 1 · 2022-12-21T12:52:15+01:00

If the country's net capital outflow did not change and yet investment rises by $250 billion, the savings must have d. risen by $250 billion, but its net exports are unchanged.

What is the net capital outflow ?

The net capital outflow is the total amount of money that a nation invests overseas over an extended period of time. When the net capital outflow (NCO) is positive, more citizens of the country are purchasing overseas assets than foreigners are.

The flight of assets happens when domestic and foreign investors sell off their interests in a given nation because they think the economy there is weak and there are greater chances elsewhere.

If the net capital outflow does not change therefore, then the increase in investment must come from savings and no exports.

Find out more on net capital outflow at https://brainly.com/question/17072823

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