The purchase of a U.S. asset by a foreign resident is a A) ...

[Shelles]

The purchase of a U.S. asset by a foreign resident is a
 
  A) surplus item on the current account. B) deficit item on the financial account.
  C) surplus item on the financial account. D) deficit item on the current account.

Question 2

If an economy's depreciation is greater than its gross investment, then
 
  A) net investment is negative and saving is negative.
  B) net investment is positive and saving is positive.
  C) net investment must equal saving.
  D) the economy's capital stock decreases.
  E) net investment is positive and saving is negative.

[Loise Hard]

Answer to Question 1

C

Answer to Question 2

D

[Shelles]

Gracias!

[kusterl]

Excellent