If Foreigners Increase Their Ownership of U

question 97

Multiple Choice

If foreigners increase their ownership of U.S.assets, this would help to offset

• A)a deficit in the U.S.current account
• B)a deficit in the U.S.capital account
• C)a surplus in the U.S.current account
• D)a surplus in the U.S.capital account
• E)a surplus in the total balance of payments

---

Definitions:

Maximise

To increase to the greatest possible amount or degree within a given set of constraints, often used in the context of profit or utility maximization.

Input

A resource or component used in the production process to produce goods and services.

Production Function

A production function is a mathematical model that describes the relationship between inputs used in production (like labor and capital) and the output produced.

Profit

The financial gain achieved when the revenues obtained from business activities exceed the expenses, costs, and taxes associated with maintaining the activity.