If domestic saving exceeds domestic investment, then net exports are ______ and net capital outflows are ______.

When domestic saving exceeds domestic investment, it creates a situation where the surplus in savings must be accounted for in the context of the broader economy. In this scenario, the excess savings are often used to finance investments abroad, which leads to an increase in net capital outflows, indicating that more capital is leaving the country for foreign investments than is coming in.

Since the excess savings are typically invested overseas, this corresponds with an increase in net exports. Positive net exports indicate that a country is selling more goods and services abroad than it is buying from other countries, which often results from the fact that domestic producers are supplying international markets with goods and services.

Thus, when domestic saving is greater than domestic investment, it leads to both positive net exports and positive net capital outflows. This relationship reflects the balance between savings, investments, and international trade, consistent with fundamental macroeconomic principles.