A. capital outflow would cause the nation’s currency to depreciate contributing to a trade deficit
B. capital inflow would cause the nation’s currency to depreciate contributing to a trade deficit
C. capital inflow would cause the nation’s currency to appreciate contributing to a trade deficit
D. capital outflow would cause the nation’s currency to appreciate contributing to a trade deficit
The Balance of Payments
The Balance of Payments
A. investment inflows
B. merchandise exports
C. payments for American services to foreigners
D. private gives to foreign residents
A. insure that the sum of all debits matches the sum of all credits
B. insure that trade imports equals the value of trade exports
C. obtain an accurate account of a balance of payments deficit
D. obtain an accurate account of a balance of payments surplus
A. involves receipts from foreigners
B. involves payments to foreigners
C. increases the domestic money supply
D. decreases the demand for foreign exchange
A. larger savings pool available to finance domestic spending
B. higher interest rate which leads to lower domestic investment
C. loss of funds to trading partners overseas
D. decrease in its services exports to other countries
A. debtor
B. creditor
C. spender
D. exporter
