Which of the Following Is a Credit Item (+)In the U.S.balance

question 27

Multiple Choice

Which of the following is a credit item (+) in the U.S.balance of payments?

• A)U.S.companies sell merchandise abroad.
• B)Foreign companies sell merchandise to U.S.consumers.
• C)U.S.consumers send money to foreign companies.
• D)Immigrants to the United States send presents of money back to their families in their native countries.
• E)Immigrants to the United States send presents of goods back to their families in their native countries.

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Definitions:

Complements

Goods or services that are used together, where the use of one increases the demand for the other.

Income Elasticity of Demand

A measure of how much the quantity demanded of a good responds to a change in consumers' income, holding all other factors constant.

Inferior Good

An inferior good is a type of good whose demand decreases when consumer income rises, unlike normal goods, where demand increases with rising consumer income.

Normal Good

A type of good for which demand increases when income increases, and vice versa, displaying a positive correlation between income and demand.