Suppose the majority of the shares of Ford stock were sold to a Japanese firm. Assuming all else remains constant, this will
A) increase the balance of the U.S. current account.
B) increase foreign direct investment in the United States.
C) decrease net portfolio investment in the United States.
D) increase the balance of the U.S. financial account.
E) create a capital outflow in the United States.
D
You might also like to view...
All these factors affect a country's exchange rates, except
a. Inflation b. Interest rates c. Employment d. Price levels
The Personal Responsibility and Work Opportunity Act of 1996 ended the federal guarantee of cash assistance for ______________.
Fill in the blank(s) with the appropriate word(s).
Goods and services purchased from international sources are
A. Net imports. B. Imports. C. Exports. D. Net exports.
In most developed economies, unemployment insurance benefits
a) are nonexistent b) paid for by insurance companies c) initially replace 100% of lost wages d) replace an increasing percentage of lost earnings as the duration of unemployment becomes prolonged e) become less generous as the duration of unemployment is prolonged