If the United States receives $200 billion of foreign investment and at the same time invests a total of $160 billion abroad, then the U.S
A) balance of payments must be negative.
B) current account must be in surplus.
C) official settlements account balance increases by $40 billion.
D) capital and financial account balance decreases by $40 billion.
E) capital and financial account balance increases by $40 billion.
E
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The supply curve of loanable funds slopes up because
A) at higher bond prices more loanable funds will be supplied. B) higher interest rates reduce the inflation rate. C) an increase in the interest rate makes lenders more willing and able to supply more funds. D) a decrease in the interest rate makes lenders more willing and able to supply more funds.
In a two-period model with default, the nation defaults on its debt in the current period if
A) the market interest rate is high, the cost of defaulting is low, and national debt is high. B) the market interest rate is low, the cost of defaulting is low, and national debt is high. C) the market interest rate is high, the cost of defaulting is high, and national debt is low. D) the market interest rate is low, the cost of defaulting is high, and national debt is low.
Refer to the above figure. Which of the following would allow society to move to point d?
A) producing efficiently B) concentrating production in wheat C) increasing the quantity of labor D) using the best land to produce wheat and the lower quality land to produce beans
Keynesian economics developed in response to:
a. the Great Depression of the 1930s. b. the inflation following World War II. c. economic growth during the 1950s. d. the Vietnam War. e. the oil embargo in the 1970s.