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Suppose an American Resident Earns $100,000 on a Financial Investment

Question 51

Multiple Choice

Suppose an American resident earns $100,000 on a financial investment in China.This would be recorded in the __________ because ___________.


A) current account, it represents income from a capital flow from a previous year
B) capital account, it represents an inflow of funds into the United States
C) services account, it represents a type of U.S. business services export
D) None of these are correct.

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