which of the following will be true when the foreign exchange market is in equilibrium and exports exceed imports? group of answer choices the nation is experiencing a trade deficit. there will be a net inflow of capital (capital inflows are greater than capital outflows). there will be a net outflow of capital (capital outflows are greater than capital inflows). the exchange rate value of the domestic currency must rise.

The sentence that will be true when the foreign exchange market is in equilibrium and exports exceed imports is that there will be a net outflow of capital (capital outflows are greater than capital inflows).

What is a net outflow of capital?

Net capital outflow is the outward flow of funds being invested oversea by a nation during a specific defined period of time. A positive net capital outflow (NCO) implies that the nation invests oversea more than the world invests in it.

Therefore, the correct answer is as given above

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