If US Residents Purchase $450 Billion of Foreign Assets and Foreigners

question 36

True/False

If U.S. residents purchase $450 billion of foreign assets and foreigners purchase $575 billion of U.S. assets, then the U.S. has net capital outflows of -$125 billion and a trade deficit of $125 billion.

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Definitions:

Abreaction

A psychological process in which repressed emotional tension is released and expressed, often through verbalization or reenactment of past traumatic events.

Gestalt Therapy

A form of psychotherapy that emphasizes personal responsibility and focuses on the individual's experience in the present moment, within the environment and in the context of their social relationships.

The Present

The current moment or period of time that is neither past nor future.

Psychoanalytic

The psychoanalytic approach is a theory and therapeutic method developed by Sigmund Freud that emphasizes unconscious processes and conflicts as the root of psychological distress and behavior.