Assume all transactions are between private individuals. A U.S. citizen buys a Japanese bond. This transaction will be entered in the US balance of payments as _______________. a) an increase in investment income and an increase in foreign private assets in the US b) a decrease in private US assets abroad and an increase in foreign private assets in the US c) an increase in imports and an increase in foreign private assets in the US d) an increase in private US assets abroad and an increase in foreign private assets in the US

Assume all transactions are between private individuals. A U.S. citizen buys a Japanese bond. This transaction will be entered in the US balance of payments as _______________. a) an increase in investment income and an increase in foreign private assets in the US b) a decrease in private US assets abroad and an increase in foreign private assets in the US c) an increase in imports and an increase in foreign private assets in the US d) an increase in private US assets abroad and an increase in foreign private assets in the US

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter23: The International Trade And Capital Flows

Section: Chapter Questions

Problem 44P: Imagine that the U.S. economy finds itself in the following situation: a government budget deficit...

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