When a foreigner buys shares in a U.S. company, the transaction
A. is registered as a debit in the capital account, and it increases private U.S. assets abroad.
B. is registered as a credit in the capital account, and it decreases foreign private assets in the United States.
C. is registered as a debit in the current account, and it decreases private U.S. assets abroad.
D. is registered as a credit in the capital account, and it increases foreign private assets in the United States.
Answer: D
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Total fixed costs decrease as output expands
a. True b. False
Suppose that the current federal funds rate is below the federal funds target rate. In order to raise the federal funds rate the Fed will ________________ securities on the open market which will ________________ the supply of reserves in the market for reserves, pushing the rate closer to the target rate
A) sell; increase B) purchase; increase C) purchase; decrease D) sell; decrease