Which of the Following Is an Example of an Outflow

question 49

Multiple Choice

Which of the following is an example of an outflow in the U.S.capital account?

• A) A foreign resident purchases a U.S. made car from a foreign dealer.
• B) A U.S. firm gives 90 days for a $1,000,000 note to be paid off by a French importer of U.S. goods.
• C) A U.S. firm pays salaries to employees based in Paris.
• D) A foreign firm receives a payment for exports from a U.S. firm.

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Definitions:

Budget Deficits

The situation when a government's expenditures exceed its revenues within a specific period, leading to borrowing or debt accumulation.

Government Spending

The total amount of money that a government spends on public services, defense, welfare, infrastructure projects, and other areas.

Tax Rate

The percentage at which an individual or corporation is taxed.

Income Earned

The total amount of money received by an individual or entity as a result of employment, investments, or other sources over a certain period.