Which of the Following Would Contribute, Directly or Indirectly, to a Deficit

question 214

Multiple Choice

Which of the following would contribute, directly or indirectly, to a deficit in the capital account of the U.S.balance of payments?

• A)A British citizen buys stock in Ford.
• B)A British citizen buys a bond from Ford.
• C)Interest rates fall in the United States relative to their level in the rest of the world.
• D)Australian publisher Rupert Murdoch buys The New York Times.
• E)Developing countries become more stable and so borrow less from U.S.banks.

---

Definitions:

Grand Tour

A traditional trip through Europe undertaken by mainly upper-class European young men of means, intended as an educational rite of passage.

Neoclassicism

An 18th-century artistic movement inspired by the art and culture of ancient Greece and Rome, emphasizing harmony, clarity, and restraint.

Italy

A country in Southern Europe, known for its rich history, artistic heritage, and significant contributions to culture, science, and food.

Enlightenment

An intellectual and philosophical movement that dominated the world of ideas in Europe during the 17th and 18th centuries, emphasizing reason, individualism, and skepticism of traditional doctrines.