Which of the following transactions directly leads to a surplus on the U.S. capital and financial account?
A) An American purchases a share of stock on the Tokyo exchange.
B) An American sells wheat to an African nation.
C) A Japanese resident purchases a U.S. government bond.
D) A resident of France visits the United States.
C
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If the government subsidizes the production of a good
A) an efficient outcome for producers occurs. B) overproduction relative to the efficient quantity occurs. C) a deadweight loss is created. D) Both answers B and C are correct.
An increase in the real interest rate in the United States will cause the dollar to ________ relative to other currencies and ________ net exports and real GDP
A) appreciate; increase B) appreciate; reduce C) depreciate; increase D) depreciate; reduce
Gross private domestic investment in the United States consists of three components:
a. stocks, bonds, and mutual funds. b. automobiles, trucks, and houses. c. plant, equipment, & software, houses, and inventories. d. plant, equipment, & software, houses, and net exports.
Which of the following is not a commonly-advanced argument for trade restrictions?
a. the jobs argument b. the national-security argument c. the infant-industry argument d. the efficiency argument