What Does a Positive U.S.capital Inflow Signify

question 131

Multiple Choice

What does a positive U.S.capital inflow signify?

• A) Nothing
• B) That the government is running a budget deficit
• C) That more funds were invested in the U.S.by foreigners than the U.S.invested abroad during a given time period
• D) That the U.S.is running a trade surplus
• E) The U.S.net exports are positive.

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Definitions:

Supply Shock

An unexpected event that suddenly changes the supply of a product or commodity, resulting in a sudden change in its price.

Demand Shock

An unexpected event that causes a sudden increase or decrease in demand for goods or services in an economy.

Imported Oil

Oil that is brought into a country from foreign sources for use as a fuel or raw material.

Interest Rate

The expense, indicated as a percentage of the principal, that a borrower pays to a lender for accessing assets.