Refer to the table below. What does the figure for net investment income indicate?
The following table contains hypothetical data for the U.S. balance of payments in a year. Answer the following question on the basis of these data. All figures are in billions of dollars.
U.S. goods exports +$390
U.S. goods imports -498
U.S. service exports +133
U.S. service imports -107
Net investment income +12
Net transfers -22
Capital account -5
Foreign purchases of U.S. assets +156
U.S. purchases of foreign assets -59
A. Americans invested more abroad than the amount foreigners invested in the U.S.
B. The size of the net inflow of foreign investment to the United States in that year
C. The net amount Americans received as interest and dividends on existing American investments abroad
D. The net amount Americans paid as interest and dividends on existing foreign investments in the United States
C. The net amount Americans received as interest and dividends on existing American investments abroad
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Government regulations that increase the cost to the employer of hiring workers will:
A. increase the supply of labor. B. increase the demand for labor. C. decrease the supply of labor. D. decrease the demand for labor.
To answer, refer to the following: "Ford built 18 vehicles per auto employee in North America last year, while GM could only manage 12." (The Wall Street Journal) In comparison with GM, Ford had
A. higher total variable cost. B. higher average variable cost. C. lower average variable cost. D. both a and c E. none of the above
The economy of Omega operates according to Okun's law. In Omega, the actual and the natural rates of unemployment both equal 5 percent, and potential GDP equals $10 trillion. What is real GDP in Omega?
A. $9.5 trillion B. $9.0 trillion C. $10.5 trillion D. $10.0 trillion
If the required reserve ratio is 10 percent, currency in circulation is $400 billion, checkable deposits are $800 billion, and excess reserves total $0.8 billion, then the currency-deposit ratio is
A) 0.25. B) 0.50. C) 0.40. D) 0.05.