Figure 19.2: Foreign Assets in the U.S

question 96

Essay

Figure 19.2: Foreign Assets in the U.S.
-Consider the figure above, which shows net exports (BOPCAA), the federal government's budget deficit (FYFSD), and net capital outflows (-BOPIA). Explain how these are related. Between 2008 and 2010, the budget deficit grew from about -$200 billion to over -$1.4 trillion (not shown). What impact will this have on the net exports?

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Definitions:

Appointing Officers

The act of designating individuals to hold specific positions or offices within an organization or institution.

Preferred Stock

A class of ownership in a corporation that has a higher claim on assets and earnings than common stock, often with dividends that are paid out before those of common stockholders.

Dividends

Payments made by a corporation to its shareholder members. It is the portion of corporate profits paid out to stockholders.

Company Liquidates

The process in which a company ceases operations and sells off its assets to pay creditors.