Consider Only the Flow of Funds Spent on Acquiring Assets

question 156

Multiple Choice

Consider only the flow of funds spent on acquiring assets. Which of the following is true if the U.S. has a net capital outflow of funds?
I. Foreign purchases of U.S. assets are greater than U.S. residents' purchases of foreign assets.
II. Foreign purchases of U.S. assets are less than U.S. residents' purchases of foreign assets.
III. There is a capital account surplus.
IV. There is a capital account deficit.

• A) I and III
• B) I and IV
• C) II and III
• D) II and IV

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Definitions:

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The length of time that a person has lived or a thing has existed, often affecting physical and mental capabilities.

Stroke

A medical condition that occurs when the blood supply to part of the brain is interrupted or reduced, leading to brain damage and potential loss of function.

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Challenges or inability to articulate words properly, potentially caused by neurological, physical, or psychological issues.

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