The capital account measures
A)the sum of U.S. sales of assets to foreigners and U.S. purchases of foreign assets.
B)the difference between U.S. sales of assets to foreigners and U.S. purchases of foreign assets.
C)the difference between U.S. sales of manufactured goods to foreigners and U.S. purchases of foreign products.
D)none of the above

Question

Quizplus · Accepted Answer

The capital account measures the difference between U.S. sales of assets to foreigners and U.S. purchases of foreign assets, reflecting the net flow of investment.

The Capital Account Measures