Question

- If Texans decrease their purchases of Mexican beer, assuming all else remains constant, this

will ________ of the United States.

A) decrease the financial account balance

B) decrease net exports

C) increase the trade deficit

D) decrease the current account balance

- An increase in capital outflows from the United States will

A) decrease the balance of the U.S. current account.

B) decrease the balance of the U.S. financial account.

C) increase the balance of the capital account of the United States.

D) decrease the balance of the capital account of the United State

- Other things equal, if foreign holdings of U.S. dollars decrease,

A) the balance on the U.S. current account will decrease.

B) the balance on the U.S. financial account will decrease.

C) the balance on the U.S. capital account will decrease.

D) the U.S. balance of payments will decrease.

Answer 1

1 A

Decrease the current account balance.

The Houston Texans is professional American football team. So as this will decrease their purchase of maximum wear it decrease the financial account balance.

2 D

Decrease the balance of the capital account of the United State.

as us will decrease the output of after it implies that its export are decreasing it will decrease the balance of capital account.

3 B

The balance on the US financial account will decrease.

if foreign holding of US dollar will decrease it will decrease the balance on the u.s. treasury account.

Because the foreigners have less amount of the dollar , so the value of dollar would decline