The capital and financial account is the record of

A) the nation's imports and exports of capital goods.
B) foreign investment in the nation minus the nation's investment abroad.
C) a nation's international trading, borrowing, and lending.
D) changes in the government's holdings of foreign currency.
E) payments for imports, receipts for exports, net interest, and net transfers.


B

Economics

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As the economy contracts, tax revenues

A. rise and transfer payments rise, causing the economy to contract by more than it would in the absence of automatic stabilizers. B. rise and transfer payments fall, causing the economy to contract by less than it would in the absence of automatic stabilizers. C. fall and transfer payments fall, causing the economy to contract by more than it would in the absence of automatic stabilizers. D. fall and transfer payments rise, causing the economy to contract by less than it would in the absence of automatic stabilizers.

Economics

If a firm produces a given amount of output using the least amount of inputs, it definitely achieves economic efficiency

Indicate whether the statement is true or false

Economics

Refer to Figure 3-1. An increase in taste or preference would be represented by a movement from

A) A to B. B) B to A. C) D1 to D2. D) D2 to D1.

Economics

If the percentage change in the quantity demanded of a good is less than the percentage change in price, price elasticity of demand is:

A. elastic. B. inelastic. C. perfectly inelastic. D. unitary elastic.

Economics