Explain us has experienced a net capital outflow


Suppose a U.S. citizen deposits $10,000 in a foreign bank and the foreign bank uses the $10,000 to buy dollar-denominated assets in the U.S. Then:

a. The U.S. has experienced a net capital outflow.
b. The U.S. has experienced an increase in net exports.
c. The foreign economy has experienced a net capital outflow.
d. The foreign economy has experienced an increase in net exports.
e. All of the above.
f. None of the above.

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Microeconomics: Explain us has experienced a net capital outflow
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