The capital account of the balance of payments consists of
A. the long-term transactions that we conduct with foreigners.
B. all the goods and services produced during the current year, which we buy from or sell to foreigners.
C. the interest, dividends, and profits that the U.S. collected from foreign investments less what U.S. firms paid foreign investors.
D. None of these statements are true.
A. the long-term transactions that we conduct with foreigners.
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A country with high inflation, rising budget and trade deficits, and a rapidly expanding money supply
(a) is in transition. (b) has macroeconomic instability. (c) is practicing import substitution. (d) is practicing export promotion.
Holding supply constant, a reduction in demand leads to
A) lower prices and higher quantity supplied. B) lower prices and lower quantity supplied. C) higher prices and higher quantity supplied. D) higher prices and lower quantity supplied.