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AP® Macroeconomics

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Moderate

Stock Purchases in Foreign Company

APMACR-NJELTO

A U.S. citizen buys stock in a Brazilian soda company. In the U.S. Balance of Trade that would be

A

debit to the current account.

B

credit to the current account.

C

debit to the capital account.

D

credit to the capital account.

E

unrecorded, since stocks are not counted as capital and no good or service traded hands. It was merely financial.