If the residents of a country receive income from their foreign investments, it is counted as a
A) credit in the current account.
B) debit in the current account.
C) credit in the capital account.
D) debit in the capital account.
E) debit in either the capital or current account, depending on the type of investment income.
A
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Provide two microeconomic statements and two macroeconomic statements. Classify your statements as positive or normative, and explain your classifications
What will be an ideal response?
The depletion of a common resource due to individually rational but collectively inefficient overconsumption is called:
A. excludability. B. the free rider problem. C. rival in consumption. D. the tragedy of the commons.
The forecasting technique which involves the use of the least squares statistical method to examine trends, and takes into account seasonal and cyclical fluctuations, is known as
A) compound growth rate projection. B) the Delphi method. C) time series projection. D) exponential smoothing projection.
Suppose farmers in a given market can either grow soy beans or corn on their land. In addition, suppose an increase in the demand for corn causes the price of corn to increase. All else equal, an increase in the price of corn creates an incentive for farmers to:
A. grow less corn, but not change their production of soy beans. B. grow more corn, but not change their production of soy beans. C. switch away from growing soy beans and into growing corn. D. switch away from growing corn and into growing soy beans.