The net capital outflow from the United States would decrease as a result of the increase in foreigners' willingness to buy American bonds.
The net flow of money a country invests abroad over a specific time period is known as a net capital outflow (NCO) (usually a year). An increased amount of foreign investment relative to domestic investment is indicated by a positive NCO.
NCO is one of two main metrics used to describe how a nation interacts with the rest of the world on a financial and economic level (the other being the balance of trade). The loanable funds market and the global foreign exchange market are both connected to NCO.
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