The Acquisition of a New Physical Asset by a Foreign

question 53

Multiple Choice

The acquisition of a new physical asset by a foreign resident is called

• A) foreign direct investment.
• B) foreign capital investment.
• C) a portfolio inflow.
• D) a portfolio outflow.
• E) capital outflow.

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Definitions:

Aggregate Supply

The total supply of goods and services that firms in an economy are willing and able to produce at different price levels during a specific time period.

Automatic Stabilizers

Changes in fiscal policy that stimulate aggregate demand when the economy goes into a recession without policymakers having to take any deliberate action

Budget Deficit

A situation where a government's expenditures exceed its revenues over a specific period of time.

Federal Reserve

The central bank of the United States, responsible for implementing monetary policy, supervising financial institutions, and providing services like clearing checks and distributing currency.