Asked by Anika Desai on May 08, 2024
Verified
Which of the following would call for outflows of money from the United States?
A) The United States exports computer software.
B) The United States purchases assets abroad.
C) Foreigners purchase assets in the United States.
D) Foreign tourists spend money in the United States.
Money Outflows
The flow of money out of a business, organization, or economy, typically for the purpose of expenses, investments, or purchasing goods and services.
Assets Abroad
Investments or capital holdings a country or individual has in foreign countries, including real estate, stocks, bonds, and other financial assets.
- Describe the elements causing alterations in a country's balance of payments and the importance of these alterations.
- Examine the factors leading to and resulting from the movement of international capital.
Verified Answer
JA
James AlbrightMay 10, 2024
Final Answer :
B
Explanation :
When the United States purchases assets abroad, it results in money flowing out of the country to pay for these assets.
Learning Objectives
- Describe the elements causing alterations in a country's balance of payments and the importance of these alterations.
- Examine the factors leading to and resulting from the movement of international capital.