If the US Has a Capital Account Surplus, It Means That

question 23

Multiple Choice

If the U.S. has a capital account surplus, it means that

• A) foreigners purchase more of U.S. assets than U.S. residents purchase foreign assets.
• B) U.S. exports of capital goods exceed its imports of capital goods.
• C) U.S. residents purchase more foreign assets than foreigners purchase U.S. assets.
• D) the quantity supplied of U.S. financial assets exceed the quantity demanded.

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Definitions:

Self-Employment Tax

A levy that encompasses Social Security and Medicare contributions, mainly targeted at individuals who are self-employed.

Pharmaceutical Company

A business involved in the research, development, manufacturing, and distribution of medications.

Self-Employment Income

Self-Employment Income refers to earnings derived from one’s own business, professional practice, or freelance work, as opposed to earning a salary or wages from an employer.

MACRS

The Modified Accelerated Cost Recovery System, a method of depreciation in the U.S. for tax purposes, allowing for accelerated asset expense deductions over time.