Question 1
When foreign assets in the United States decrease,
◦ the United States residents are reducing their debt to the rest of the world.
◦ the United States residents are increasing their stock of assets.
◦ the United States residents are increasing their debt to the rest of the world.
◦ foreign residents debts to the United States residents also increase.
Question 2
When foreign assets in the United States increase,
◦ the United States residents are reducing their debt to the rest of the world.
◦ the United States residents are increasing their debt to the rest of the world.
◦ foreign residents debt to the United States residents also decrease.
◦ the United States residents are reducing their stock of assets.