If the United States receives 200 billion of foreign investment and at the same time invests a total of 160 billion abroad, then the U.S.
A) balance of payments must be negative.
B) current account must be in surplus.
C) official settlements account balance increases by 40 billion.
D) capital and financial account balance decreases by 40 billion.
E) capital and financial account balance increases by 40 billion.
Question 2
In the aggregate expenditure (AE) model, the economy is driven to its equilibrium by changes in
A) autonomous expenditures that are the result of changes in real GDP.
B) investment that are the result of changes in real GDP.
C) induced expenditures that are the result of changes in real GDP.
D) net taxes that are the result of changes in real GDP.
E) government expenditures on goods and services that are the result of changes in real GDP.
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