When a US Company Purchases a Foreign Company, the Transaction Is Recorded

question 174

Multiple Choice

When a U.S. company purchases a foreign company, the transaction is recorded in the balance of payments as part of:

• A)the current account.
• B)the financial and capital account.
• C)the statistical discrepancy.
• D)net transfers.

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Definitions:

Theory of the Multiplier

An economic theory suggesting that an initial increase in spending leads to increased income and consumption, further magnifying economic activity.

Disposable Income

Disposable income for households to spend or save after accounting for income taxes.

Autonomous Consumption

The level of consumption spending that occurs when income is zero, representing the expenditures necessary for basic needs.

APC

Absolute Plate Count, a method used in microbiology to estimate the total number of viable bacteria in a sample. If this is not the intended context, then NO.