A U.S. individual buys shares in a Swiss company. This transaction will be entered as
A. a credit in the U.S. capital account.
B. a debit in the U.S. current account.
C. a debit in the U.S. capital account.
D. a credit in the U.S. current account.
Answer: C
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Referring to a production possibilities curve and the goods being compared, depict the economic event. Computerization in the 1990s launched thousands of new businesses in the United States (capital goods vs. consumer goods).
A. A movement from a point inside the curve to a point on the curve B. A movement from a point on the curve to a point inside the curve C. A shift in the entire curve to the right (outward) D. A shift in the entire curve to the left (inward)
An increase in the real interest rate outside of the United States will cause net capital outflows to ________ and cause the dollar to ________ relative to other currencies
A) increase; appreciate B) increase; depreciate C) decrease; appreciate D) decrease; depreciate
A decrease in the price of spaghetti is likely to cause:
A. a movement to the right along the demand curve for spaghetti. B. an inward shift of the demand curve for spaghetti. C. an outward shift of the demand curve for spaghetti. D. a movement to the left along the demand curve for spaghetti.
A price-discriminating monopolist will charge a higher price to individuals whose demand is:
A. more elastic. B. more inelastic. C. unit elastic. D. unit inelastic.