Suppose the majority of the shares of Bombardier stock were sold to an American firm.Assuming all else remains constant, this will
A)increase the balance of the Canadian financial account.
B)increase foreign direct investment in Canada.
C)increase the balance of the Canadian current account.
D)decrease net portfolio investment in Canada.
E)create a capital outflow in Canada.

Question

Quizplus · Accepted Answer

When the majority of Bombardier stock is sold to an American firm, it results in an inflow of capital into Canada, increasing the balance of the Canadian financial account.

Suppose the Majority of the Shares of Bombardier Stock Were