Question 6 (1 point) Which of the following would contribute, directly or indire

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Question 6 (1 point) Which of the following would contribute, directly or indirectly, to a deficit in the capital account of the U.S. balance of payments? A British citizen buys stock in Ford. A British citizen buys a bond from Ford Interest rates fall in the United States relative to their level in the rest of the world. Australian publisher Rupert Murdoch buys The New York Times. Developing countries become more stable and so borrow less from U.S. banks. Question 7 (1 point) MacBook Air FS 5 7 8 9

Explanation / Answer

The correct answer is: c)

Reason: Due to fall in the interest rate, capital will flow out of the US and thus contribute to the deficit in the US capital account.

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