An increase in United States net foreign direct investment would occur if
A) United States citizens have increased the value of foreign stocks and bonds they own.
B) net foreign investment increases.
C) United States citizens have increased their building or purchasing of facilities in foreign countries.
D) net capital flows decrease.
C
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Vault cash is equal to $2 million, deposits by depository institutions at the central bank are $1 million, the monetary base is $15 million, and bank deposits are $35 million. Currency held by the nonbank public is
A) $3 million. B) $12 million. C) $15 million. D) $20 million.
To achieve a $500 billion increase in AD, if the MPC is 0.8, what increase in government purchases would be called for?
a. $625 billion b. $500 billion c. $400 billion d. $100 billion
In general, speculators tend to make a floating exchange rate system more stable
a. True b. False Indicate whether the statement is true or false
In the following question you are asked to determine, other things equal, the effects of a given change in a determinant of demand or supply for product X upon (1) the demand (D) for, or supply (S) of, X; (2) the equilibrium price (P) of X; and (3) the equilibrium quantity (Q) of X. If X is an inferior good, a decrease in income will:
A. increase S, decrease P, and increase Q. B. decrease D, decrease P, and increase Q. C. decrease D, decrease P, and decrease Q. D. increase D, increase P, and increase Q.