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One problem with the key industry argument in favor of trade restrictions is that

Select one:

a.

it is easy to identify key industries in retrospect.

b.

key industries are difficult to identify in advance.

c.

trade restrictions would work better than subsidies to encourage spillovers.

d.

there are no industries with spillovers sufficient to warrant any action.

Which item is part of the capital account?

Select one:

a.

movements of bank deposits to the United States

b.

the balance of trade

c.

net income on capital held abroad

d.

currency held by the government

Which transactions cause the U.S. capital account to increase?

Select one:

a.

American citizens purchase Japanese imports.

b.

Japanese citizens purchase U.S. exports.

c.

Japan receives U.S. foreign aid.

d.

Japanese citizens purchase real estate in the United States.