Which of the following statements accurately describes capital movements?
When foreigners supply more funds than they demand, the result is a capital outflow from the United States.
In a closed economy, individuals, firms, and governments are able to borrow from and lend to foreigners.
When foreigners demand more funds than they supply, the result is a capital inflow to the United States.
In an open economy, individuals, firms, and governments are able to borrow from and lend to foreigners.
