The capital account balance is equal to the
A. Foreign purchases of U.S. assets minus U.S. purchases of foreign assets.
B. U.S. purchases of foreign assets minus foreign purchases of U.S. assets.
C. Current account balance plus foreign purchases of U.S. assets.
D. Current account balance plus U.S. purchases of foreign assets.
Answer: A
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Important factors that change the demand for dollars and hence shift the demand curve for dollars include which of the following?
I. interest rates around the world II. the current exchange rate III. the expected future exchange rate A) I and II B) I and III C) II D) I, II, and III
An expansionary monetary policy that successfully counteracts a recession has the side effect of
A) lower investment spending than if no action had been taken. B) a larger government deficit than if no action had been taken. C) a higher price level than if no action had been taken. D) lower output than if no action had been taken.
A decrease in the average price level leads to a decrease in the purchasing power of wealth
a. True b. False Indicate whether the statement is true or false
A perfectly competitive firm currently sells 30,000 cartons of eggs at $1.25 each. If the firm wants to sell one more carton of eggs, the firm:
A.) Should raise its price above $1.25. B.) Cannot sell an additional carton at any price because there are other egg farmers in the market. C.) Must sell the carton for less than $1.25. D.) Should price the carton at $1.25.