Suppose the majority of the shares of British Airways stock were sold to a firm in the United States. Assuming all else remains constant, this will

A) decrease the balance of the U.S. financial account.
B) create a capital inflow in the United States.
C) decrease foreign direct investment in the United States.
D) increase net portfolio investment in the United States.
E) decrease the balance of the U.S. current account.


A

Economics

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What is the benefit of understanding the income and the substitution effects?

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Economics