Which of the following transactions directly leads to a surplus on the U.S. capital and financial account?
A) An American purchases a share of stock on the Tokyo exchange.
B) An American sells wheat to an African nation.
C) A Japanese resident purchases a U.S. government bond.
D) A resident of France visits the United States.
Question 2
Dumping occurs when a foreign firm ________.
A) pollutes international waters
B) disposes of waste materials in other countries
C) sells inferior output to foreigners
D) sells its exports at a lower price than its cost of production
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