The statement "A trade surplus means that there is a net outflow of capital." is correct. Hence, the suitable option will be option (2).
A trade surplus, which happens when an economy's exports surpass its imports, is an economic sign indicating a healthy trade balance. There is a trade surplus when the result of the following calculation is positive:
The trade balance is calculated as Total Value of Exports minus Total Value of Imports.
A trade surplus is when there is a net inflow and the equation above produces a positive result. This is the opposite of a trade deficit. Reports on the trade balance are made available each month by the US Bureau of Economic Analysis (BEA).
An economy's employment and economic growth can be boosted by a trade surplus, but it can also result in higher prices and interest rates.The value of a nation's currency on the international markets can also be impacted by its trade balance because it enables that nation to trade away the majority of its money.
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