The current account balance of the balance-of-payments account equals

A. the domestic production of goods and services.
B. net foreign investment.
C. the sum of national savings and domestic capital formation.
D. net credits minus debits involving changes in nonofficial foreign financial assets and liabilities.

Answer: B

Economics

You might also like to view...

Some politicians have recently suggested changing the income tax system in the U.S. to a flat tax system where all taxpayers would pay the same percentage of their income in tax to the federal government

Explain how such a change can be analyzed in terms of efficiency. Do you believe that this tax will have equity effects as well?

Economics

Suppose the Fed purchases Treasury securities. Interest rates in the United States will ________ and the U.S. dollar will ________ against foreign currencies

A) decrease; depreciate B) increase; depreciate C) decrease; appreciate D) increase; appreciate

Economics