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Question 71 pts The capital account measures income flows in and out of the economy. is...

Question 71 pts

The capital account

measures income flows in and out of the economy.
is hugely negative in the US economy currently.
measures net changes in international ownership of assets.
all of the above.

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Question 81 pts

Statement I: The U.S. and nearly all other industrial nations now operate on a system of fixed exchange rates. Statement II: In 1971, the U.S. adopted the gold exchange standard.

Statement I is true and statement II is false.
Statement II is true and statement I is false.
Both statements are true.
Both statements are false.

Homework Answers

Answer #1

71. Option 3. Measures net changes in international ownership of assets.

Explanation: Capital account reflects the net changes in the ownership of the physical and financial capital of a nation.

81. Option 4. Both statements are false.?

Explanation: The U.S. and nearly all other industrial nations now operate on a system of flexible exchange rate rather than a fixed exchange rate. Also, the USA abandoned the gold standard in 1971. So, both the statements are false.

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