Multiple Choice
When foreigners purchase U.S. assets, there is an inflow of funds from abroad and this is recorded as a
A) positive item in the capital account.
B) positive item in the current account.
C) negative item in the capital account.
D) negative item in the current account.
Correct Answer:
Verified
Correct Answer:
Verified
Q149: A surplus in the current account implies<br>A)
Q150: International trade does not affect the economy's
Q151: Free-floating exchange rates are determined by the<br>A)
Q152: If the U.S. exchange rate increases relative
Q153: A recession in foreign countries will<br>A) decrease
Q155: Which of the following affects the quantity
Q156: If Canada has a capital account deficit,
Q157: As incomes in foreign nations rise, foreigners
Q158: If income increases in other countries, then
Q159: Suppose that at the fixed exchange rate