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Lending abroad​ represents: A. a capital inflow. B. positive net savings. C. a capital outflow. D. none of the above.

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Lending abroad​ represents:

A.

a capital inflow.

B.

positive net savings.

C.

a capital outflow.

D.

none of the above.

✅ Answers (1)

0
Private answer

C.

a capital outflow.

Explanation

Capital outflow is the movement of assets out of a country. Capital inflow represents the movement of funds into the domestic economy from abroad. Lending abroad is a form of capital outflow. Net capital outflow is amount domestic investors lend abroad minus amount foreign investors lend into the country.

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Answered on June 24, 2020 2:19 pm

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