The accompanying diagram shows foreign-owned assets in the United States and U.S.-owned assets abroad, both as a percentage of foreign GDP. As you can see from the diagram, both increased around fivefold from 1980 to 2016.

Percent of rest-o-the-worl ‘CoP Foveign-owned cssets in the United States N a

\ s-ommed sss aood PSK EL EES SF Data rom: MF; Bureau of Economic Analyst.

a. As U.S.-owned assets abroad increased as a percentage of foreign GDP, does this mean that the United States, over the period, experienced net capital outflows?

b. Does this diagram indicate that world economies were more tightly linked in 2016 than they were in 1980?