Suppose the majority of the shares of Ford stock were sold to a Japanese firm. Assuming all else remains constant, this will
A) decrease net portfolio investment in the United States.
B) increase foreign direct investment in the United States.
C) increase the balance of the U.S. current account.
D) create a capital outflow in the United States.
E) increase the balance of the U.S. financial account.
E
You might also like to view...
The demand curve shown in the figure above is ________ over the price range from $0.90 to $1.10 per pack
A) perfectly elastic B) perfectly inelastic C) unit elastic D) elastic but not perfectly elastic E) inelastic but not perfectly inelastic
If market participants rely only past stock prices to forecast future stock prices,
A) they will be better able to forecast future price increases than future price decreases. B) they will be better able to forecast future price decreases than future price increases. C) they have adaptive expectations. D) they have rational expectations.