The accompanying diagram shows the assets of the rest ofthe world that are in the United
Chapter 8, Problem 2(choose chapter or problem)
The accompanying diagram shows the assets of the rest ofthe world that are in the United States and U.S. assetsabroad, both as a percentage of rest-of-the-world GDP. Asyou can see from the diagram, both have increased nearlyfivefold since 1980.a. As U.S. assets abroad have increased as a percentageof rest-of-the-world GDP, does this mean that theUnited States, over the period, has experienced netcapital outflows?b.Does this diagram indicate that world economies weremore tightly linked in 2007 than they were in 1980?
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