Which of the following transactions represents a deficit in the current account of the US balance of payments?
a) the moscow capital investment corporation makes a loan to a US firm
b) a US subsidiary exports raw materials to its french parent company
c) US firms and individuals receive dividends on US investments in latin america
d) US tourists in great britain purchase pounds sterling
e) foreigners purchase US securities
Ans: d) US tourists in great britain purchase pounds sterling
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Suppose the growth rate of the firm's profit is 5 percent, the interest rate is 6 percent, and the current profits of the firm are $100 million. What is the value of the firm?
A. $111.5 million B. $10,600 million C. $1,766.6 million D. None of the statements associated with this question are correct.
The larger the debt and the inflation rate, the less debt will be eliminated by inflation.
Answer the following statement true (T) or false (F)