Klein Turnbull
04/12/2024 · Middle School
If domestic residents of New Zealand purchase \( \$ 60 \) million of foreign assets and foreigners purchase \( \$ 50 \) million of New Zealand assets, then New Zealand's net captal outiow is a. \( \$ 10 \) million, so it must have a trade defict b. \( \$ 10 \) mition, so it must have a trade surplus c. \( \$ 10 \) miltion, so it must have a trade surplus a. \( \$ 10 \) milion, so it must have a trade deficit
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New Zealand's net capital outflow is \( \$ 10 \) million, indicating a trade deficit.
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