Question

If exports are negative then: A. NCO is negative, so foreign assets bought by Americans are...

If exports are negative then:

A. NCO is negative, so foreign assets bought by Americans are greater than American assets bought by foreigners

B. NCO is positive, so foreign assets bought by Americans are greater than American assets bought by foreigners

C. NCO is negative, so American assets bought by foreigners are greater than foreign assets bought by Americans

D. NCO is positive, so American assets bought by foreigners are greater than foreign assets bought by Americans

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Answer #1

Option c

C. NCO is negative, so American assets bought by foreigners are greater than foreign assets bought by Americans

Net capital outflow is negative as the Americal assets brought by foreigners is greater than the foreign assets bought by Americans.

Net capital outflow is negative means the absolute capital goes out less than the capital comes in the country..

Net export =export - import

Net export is negative then import is higher than the export.

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