When there is political instability in another country, the United States can expect
A) an increase in the financial account balance due to an increase in the current account.
B) an increase in the financial account balance due to the movement of assets to the U.S.
C) a decrease in the balance of payments due to a decrease in official reserve transactions.
D) a decrease in the balance of payments due to a decrease in the demand for goods and services.
Answer: B
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Marginal utility can be:
A) positive, but not negative B) positive or negative, but not zero. C) positive, negative, or zero. D) decreasing, but not negative.
If foreign holdings of U.S. dollars increase, holding all else constant
A) the balance on the U.S. financial account will increase. B) the balance on the U.S. current account will increase. C) the U.S. balance of trade will increase. D) the balance on the U.S. capital account will increase.