Figure 13.1.U.S.Capital and Financial Account

question 96

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.residents receive subsidies to invest in foreign nations
• B) U.S.interest rates rise relative to foreign interest rates
• C) Taxes are reduced on income earned by U.S.residents from their foreign investments
• D) Expected profits decline on U.S.investments in foreign manufacturing

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Definitions:

NBA Game

A professional basketball contest between two teams within the National Basketball Association.