What was the value of Country D's net capital outflow?[Fill in the blank]

Question

BlackTom AI · Accepted Answer

The question asks: What was the value of Country D's net capital outflow? 
Since this is a fill-in-the-blank type, there are no multiple-choice options to evaluate. The provided answer indicates the value is -50. 
First, recall the definition: net capital outflow (NCO) measures the net flow of funds being invested abroad by a country’s residents minus foreign residents' investment in the country. A positive NCO means a net outflow of capital, while a negative NCO means a net inflow (capital coming into the country). 
Given the answer -50, this would be interpreted as a net capital inflow of 50 (since outflow is the opposite sign of inflow). In other words, Country D experienced more foreign investment entering the country than domestic investment abroad by 50 units. 
To validate, one would typically check the associated data series (e.g., capital account flows, balance of payments components) and verify that the computed NCO value matches the algebra from the national accounts identities. If the identity NCO = NX (net lending/borrowing from the rest of the world) or NCO = - (Net financial account balance) is used in the course material, ensure the sign convention matches the problem's framework. 
Common pitfalls to avoid: assuming positive NCO always indicates inflow, or overlooking the sign convention used in the dataset. Some problems define NCO as outflow with a positive sign, while others use NCO as inflow with a positive sign; always confirm the convention given in your course or exam materials. 
In summary, the stated value -50 corresponds to a net capital inflow of 50, implying that Country D borrowed or attracted 50 units of capital domestically rather than investing 50 units abroad. 
If you need, I can walk through a sample calculation using hypothetical data to show how you would arrive at -50 step by step.

What was the value of Country D's net capital outflow?[Fill in the blank]

View Explanation

Log in for full answers

Similar Questions

Kiara is a web designer living in Illinois. She creates and sells a website to Gabrielle who is living in Germany. Gabrielle pays Kiara 5,000 euros for the website. If Kiara keeps the 5,000 euros at home, NCO

If a country has positive net capital outflows, then its net exports are[Fill in the blank]

Kiara is a web designer living in Illinois. She creates and sells a website to Gabrielle who is living in Germany. Gabrielle pays Kiara 5,000 euros for the website. If Kiara keeps the 5,000 euros at home, NCO

A country has net capital outflow of $40 billion. Which of the following is consistent with this net capital outflow?

Matt and Melinda are American residents. Matt buys stock issued by a German corporation. Melinda opens a shoe factory in Panama. Whose purchase, by itself, increases the U.S.’s net capital outflow?

If a country has Y > C + I + G, then it has

In a consumer society, many adults channel creativity into buying things

Economic stress and unpredictable times have resulted in a booming industry for self-help products

More Practical Tools for Students Powered by AI Study Helper

Homework AI Solver

Stylized AI Paper Writer

Plagiarism Checker Assistant

Citation AI Academic Writing Tool

In-Class Translation Assistant

AI Note Generator

AI Quiz Answers

Past Exam Questions from University Test Bank

Smart Practice Assistant

Adaptive Practice

Making Your Study Simpler