Figure 13.1.U.S.Capital and Financial Account

question 57

Multiple Choice

Figure 13.1.U.S.Capital and Financial Account

-Refer to Figure 13.1.The U.S.capital and financial account schedule would shift upward from CA0 to CA1 if:

• A) U.S.political stability improves relative to foreign political stability
• B) U.S.interest rates rise relative to foreign interest rates
• C) Taxes are placed on income earned by U.S.residents from foreign investments
• D) Restrictions are imposed on international loans granted by foreign banks

---

Definitions:

Regular Retirement Plan

A retirement savings plan that allows individuals to save and invest for retirement, typically with tax advantages or benefits.

Tax Rate

The percentage at which income or financial transactions are taxed by the government.

Total Savings

The sum of all savings held by an individual or institution, often including bank accounts, investments, and other forms of financial reserves.

Annual Return

The percentage change in value of an investment over a one-year period, accounting for any dividends or interest earned.