Suppose the net capital outflow from Zenovia is negative. This implies that:

Suppose the net capital outflow from Zenovia is negative. This implies that:

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 Suppose the net capital outflow from Zenovia is negative. This implies that:

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the citizens of Zenovia are investing more in foreign assets than foreigners are investing in assets in Zenovia. 

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the real interest rate in foreign countries is higher than in Zenovia.

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foreigners are not interested in buying assets in Zenovia. 

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the real interest rate in Zenovia is high.

 
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