The financial account balance is a nation's:
A. net investment income minus its net transfers.
B. exports of goods and services minus its imports of goods and services.
C. sale of real and financial assets to people living abroad minus its purchases of real and
financial assets from foreigners.
D. domestic investment spending minus domestic saving.
C. sale of real and financial assets to people living abroad minus its purchases of real and
financial assets from foreigners.
You might also like to view...
Harold owns a cranberry bog in which he grows cranberries. Harold's farm is a competitive, profit-maximizing firm. As such, Harold much decide (i) how many cranberries to sell. (ii) what price to charge for his cranberries. (iii) what wages to pay his workers. (iv) how many workers to hire
a. (i) only b. (ii) and (iii) only c. (i) and (iv) only d. (i), (ii), (iii), and (iv)
Some economists argue that a rise in the interest rate, brought about by a rise in government borrowing in the loanable funds market to finance a budget deficit, brings in foreign funds in search of the higher interest rate return. This, in turn, dampens the rise in the interest rate. If this is true as far as it goes, there will be __________ crowding out than there would be if foreign funds did
not flow into the country. A) more B) less C) the same amount of D) none of the above