The capital account balance is equal to the
A. Current account balance plus U.S. purchases of foreign assets.
B. Current account balance plus foreign purchases of U.S. assets.
C. U.S. purchases of foreign assets minus foreign purchases of U.S. assets.
D. Foreign purchases of U.S. assets minus U.S. purchases of foreign assets.
Answer: D
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Which of the following statements is TRUE?
A) If private saving is greater than private investment, then the private sector has a surplus. B) If private investment is greater than private saving, then the private sector has a deficit. C) If private investment is greater than private saving, then either the government or net export sector must have a surplus. D) All of the above answers are correct.
Economics is a
A) hard science. B) physical science. C) natural science. D) social science.
You own an ice cream store and are concerned that an employee may be giving generous scoops to friends and relatives and smaller scoops to some other customers. This may be reducing sales. In this example, you are the
a. principal and the your employee is the agent. b. agent and the your employee is the principal. c. signaler and the your employee is the screener. d. screener and the owner of the coffee ship is the signaler.
What is one of the advantages of monetary policy over fiscal policy?
A. Its control over the size of Federal budget deficits B. The quickness with which it can be used C. The opportunity for broad political influence D. It can guarantee an expansion of aggregate demand when needed