What role do households play in capital markets? What will be ...

[saraeharris]

What role do households play in capital markets?
 
  What will be an ideal response?

Question 2

If foreign holdings of U.S. dollars increase, holding all else constant,
 
  A) the balance on the U.S. current account will increase.
  B) the balance on the U.S. capital account will increase.
  C) the U.S. balance of trade will increase.
  D) the balance on the U.S. financial account will increase.

[meow1234]

Answer to Question 1

Households indirectly supply the financial resources necessary for firms to purchase capital.

Answer to Question 2

D