Final answer:
Net capital outflow is the difference between the amount domestic investors lend abroad and the amount that foreign investors lend domestically, which ties into the national saving and investment identity.
Step-by-step explanation:
The correct answer is:
c. domestic investors lend abroad minus the amount that foreign investors lend here.
Net capital outflow (NCO) is a measure that calculates the difference between the amount of domestic capital invested abroad and the amount of foreign capital invested in the domestic economy. It represents the net flow of a country's financial assets, indicating whether a country is investing more abroad or receiving more foreign investment.
Therefore, option c is the accurate representation of NCO, showing the balance between the capital invested abroad by domestic investors and the capital invested domestically by foreign investors.