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When a U.S. investor buys a bond issued in a foreign country O A. the trade balance decreases. O B. the balance on the capital
When a U.S. investor buys a bond issued in a foreign country O A. the trade balance decreases. O B. the balance on the capital account decreases. O C. the balance on the current account decreases. O D. the balance on the financial account decreases.Based on the following information, what is the balance on the current account? Exports of goods and services = $5 billion Imports of goods and services= $3 billion Net income on investments = - $2 billion Net transfers = - $2 billion Increase in foreign holdings of assets in the United States = $4 billion Increase in US. holdings of assets in foreign countries = $1 billion 0 A. '52 billion 0 B. $1 billion 0 C. $3 billion 0 D. $4 billion
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