If u. s. residents purchase $450 billion of foreign assets and foreigners purchase $575 billion of u. s. assets, then the u. s. has net capital outflows of -$125 billion and a trade deficit of $125 billion. a. true. b. false.

False

Explanation:

Net capital outflows is the difference between purchases of foreign assets by US citizens and the purchase of US assets by foreigners.

Net capital outflows = $450 million - $575 million = - 125 million

It implies that foreigners spent more and US citizens spent less, this is a trade surplus.

Trade surplus occurs when exports exceeds import.

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