Question: Which is the most accurate statement? (LO2) a) Since our current account defi cit is matched by our capital account surplus, we have no problem

Which is the most accurate statement? (LO2)

a) Since our current account defi cit is matched by our capital account surplus, we have no problem with respect to our international transactions.

b) Foreigners invest all the dollars they receive from our capital account defi cit to buy American assets.

c) Our current account defi cits are declining and should disappear before the year 2015.

d) A declining dollar makes foreign investment in dollar-denominated assets much less attractive to foreigners.

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