Which statement is the most accurate? a) Since our current account deficit is matched by our capital

Question:

Which statement is the most accurate?

a) Since our current account deficit 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 deficit to buy American assets.

c) Our current account deficits are declining and should disappear before the year 2020.

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

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For  answer-question

Microeconomics

ISBN: 9780077641542

11th Edition

Authors: Stephen Slavin

Question Posted: