Which of the following would contribute, directly or indirectly, to a deficit in the capital account of the U.S.balance of payments?
A) A British citizen buys stock in Ford.
B) A British citizen buys a bond from Ford.
C) Interest rates fall in the United States relative to their level in the rest of the world.
D) Australian publisher Rupert Murdoch buys The New York Times.
E) Developing countries become more stable and so borrow less from U.S.banks.
Correct Answer:
Verified
Q21: Net unilateral transfers in the United States
Q22: When an American buys a Swedish financial
Q23: If a country runs a deficit in
Q24: Current account transactions are records of the
Q25: The debit side of the current account
Q27: When net unilateral transfers are added to
Q28: The capital account keeps track of the
Q29: Foreign investors may wish to purchase U.S.assets
Q30: Which of the following is true concerning
Q31: Exhibit 20-1 ![]()
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents