Why does continued foreign investment in U.S. stocks and bonds and foreign companies continuing to build factories in the United States result in a current account deficit in the United States?
What will be an ideal response?
The willingness of foreign investors and companies to purchase financial and physical assets in the United States leads to a U.S. financial account surplus. If the United States runs a financial account surplus, it must run a current account deficit.
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What do economists call movements of labor and capital between nations?
What will be an ideal response?
Refer to Scenario 5.8. The value to Icarus Airlines of complete information is
A) $40 million. B) $90 million. C) $115 million. D) $120 million. E) $125 million.
If a fixed money growth rate of 4 percent per year is followed and the growth rate of the natural level of real GDP is 4 percent per year, the average rate of inflation is: a. 8 percent
b. 4 percent. c. zero. d. 1-2 percent.
The average-total-cost curve reflects the shape of both the average-fixed-cost and average-variable-cost curves
a. True b. False Indicate whether the statement is true or false