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Which of the following is the most appropriate policy to create a surplus in the capital account? A. Decrease government spending B. Increase money supply.
Which of the following is the most appropriate policy to create a surplus in the capital account? A. Decrease government spending B. Increase money supply. C. Decrease government spending and increase money supply. X D. Increase the central bank's official reserves E. Increase government spending. X Incorrect Question 4Question Which of the following would not be counted in the U.S. balance of payments current account? A. A foreign country's purchase of a new jet fighter aircraft from a U.S. aircraft company. B. A wealthy Italian purchases numerous rosebushes in the United States for his villa. O C. Income paid to an American oil engineer acting as an adviser to Middle Eastern countries in the area of petroleum extraction. X O D. A $50 dividend check a U.S. citizen receives from ownership of shares of stock in a German corporation. O E. A U.S. company's purchase of newly constructed factory buildings in Mexico.A contractionary fiscal policy will: OA. increase interest rates and decrease the value of a country's currency, leading to a smaller trade deficit decrease interest rates and decrease the value of a country's currency, eading to a larger trade surplus. XO C. increase interest rates and increase the value of a country's currency, leading to a larger trade deficit D. increase interest rates and decrease the value of a country's currency, leading to a smaller trade surplus. E. increase interest rates and increase the value of a country's currency, leading to a larger trade surplus. X Incorrect
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