Which of the Following Would Contribute, Directly or Indirectly, to a Deficit

question 214

Multiple Choice

Which of the following would contribute, directly or indirectly, to a deficit in the capital account of the U.S.balance of payments?

• A)A British citizen buys stock in Ford.
• B)A British citizen buys a bond from Ford.
• C)Interest rates fall in the United States relative to their level in the rest of the world.
• D)Australian publisher Rupert Murdoch buys The New York Times.
• E)Developing countries become more stable and so borrow less from U.S.banks.

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Definitions:

Agricultural Diversification

The practice of growing a variety of crops or engaging in different agricultural activities to reduce risk and increase sustainability in farming.

Crop-Lien System

A credit system widely used in the Southern United States after the Civil War, where farmers used their crops as collateral for loans, leading to cycles of debt and poverty.

Southern Farmers

Generally refers to agricultural workers and landowners in the Southern United States, historically dependent on crops like cotton and tobacco, and deeply affected by the Civil War and subsequent economic changes.

Hatch Act

A U.S. federal law enacted in 1939 that restricts the political activities of government employees in order to ensure the neutrality of the public service.