Which statement is false?
A. Foreigners have reinvested most of the dollars they have earned trading with us in U.S. government and corporate securities, real estate, and direct investment in plant and equipment.
B. Until the early 1980s Americans were investing much more in foreign countries than foreigners were in the United States.
C. Our capital and current accounts add up to zero.
D. None of these statements are false.
D. None of these statements are false.
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The above figure shows the demand and supply curves for housing. What would be the effects of a rent ceiling equal to $500 per month?
A) a surplus equal to 3,000 apartments B) a shortage equal to 3,000 apartments C) a shortage equal to 250 apartments D) nothing because the rent ceiling has no effect on the equilibrium price and quantity
In the Keynesian model of an open economy, a temporary decrease in government purchases would ________ the domestic real interest rate and ________ net desired saving (desired saving less desired investment) in the economy
A) lower; increase B) lower; decrease C) raise; increase D) raise; decrease
In the Classical view, rising interest rates reduce
A) government spending. B) saving. C) velocity. D) investment.
When two countries specialize and trade:
A. both can enjoy more output than either could produce on its own. B. they can have consumption possibilities beyond their production possibilities. C. surplus can be gained by both countries. D. All of these are true.