« previous next »

Author Question: Why does continued foreign investment in U.S. stocks and bonds and foreign companies continuing to ... (Read 87 times)

Deast7027

  • Hero Member
  • *****
  • Posts: 538
on: Jun 29, 2018
Why does continued foreign investment in U.S. stocks and bonds and foreign companies continuing to build factories in the United States result in a current account deficit in the United States?
 
  What will be an ideal response?

Question 2

Accumulating debt poses a problem for the U.S. federal government because
 
  A) it is currently in danger of defaulting on the debt.
  B) the debt has to ultimately be paid off.
  C) building roads and bridges do not yield enough benefits to justify their cost.
  D) a large debt-to-GDP ratio causes crowding out.


cswans24

  • Sr. Member
  • ****
  • Posts: 317
Reply #1 on: Jun 29, 2018
Answer to Question 1

The willingness of foreign investors and companies to purchase financial and physical assets in the United States leads to a U.S. financial account surplus. If the United States runs a financial account surplus, it must run a current account deficit.

Answer to Question 2

D


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
« previous next »
 

Did you know?

Of the estimated 2 million heroin users in the United States, 600,000–800,000 are considered hardcore addicts. Heroin addiction is considered to be one of the hardest addictions to recover from.

Did you know?

Despite claims by manufacturers, the supplement known as Ginkgo biloba was shown in a study of more than 3,000 participants to be ineffective in reducing development of dementia and Alzheimer’s disease in older people.

Did you know?

Hypertension is a silent killer because it is deadly and has no significant early symptoms. The danger from hypertension is the extra load on the heart, which can lead to hypertensive heart disease and kidney damage. This occurs without any major symptoms until the high blood pressure becomes extreme. Regular blood pressure checks are an important method of catching hypertension before it can kill you.

Did you know?

Prostaglandins were first isolated from human semen in Sweden in the 1930s. They were so named because the researcher thought that they came from the prostate gland. In fact, prostaglandins exist and are synthesized in almost every cell of the body.

Did you know?

Asthma occurs in one in 11 children and in one in 12 adults. African Americans and Latinos have a higher risk for developing asthma than other groups.

Chimpanzees live in complex kin groups in which lifelong bonds and individual personalities play key Chimpanzees live in complex kin groups in which lifelong bonds and individual personalities play key
An investment versus a bill An investment versus a bill
In 2013, Americans learned that the federal government massively surveys their phone calls and e-mai In 2013, Americans learned that the federal government massively surveys their phone calls and e-mai
Instructions for Completing the CMS-1500 (02/12) Claim Form Continued Instructions for Completing the CMS-1500 (02/12) Claim Form Continued
Founder of Adidas and Puma companies are brothers Founder of Adidas and Puma companies are brothers
The population of a city has continued to grow since 1950. The population of a city has continued to grow since 1950.
Video: Carbohydrate Metabolism: Introduction to renal processes and filtrate formation and composition

For a complete list of videos, visit our video library