QuestionAugust 9, 2025

What would be recorded on the minus side of the U.S. balance of payments? Multiple Choice merchandise export sales transportation return on capital invested abroad money spent by foreign tourists money spent on foreign economic aid

What would be recorded on the minus side of the U.S. balance of payments? Multiple Choice merchandise export sales transportation return on capital invested abroad money spent by foreign tourists money spent on foreign economic aid
What would be recorded on the minus side of the U.S. balance of payments? Multiple Choice merchandise export sales transportation return on capital invested abroad money spent by foreign tourists money spent on foreign economic aid

Solution
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Answer

Money spent on foreign economic aid Explanation 1. Identify the minus side of the balance of payments The minus side records outflows of money from the U.S. to other countries. 2. Analyze each option - Merchandise export sales: Inflow, recorded on the plus side. - Transportation: Depends on context; if it's payment for foreign services, it's an outflow. - Return on capital invested abroad: Inflow, recorded on the plus side. - Money spent by foreign tourists: Inflow, recorded on the plus side. - Money spent on foreign economic aid: Outflow, recorded on the minus side.

Explanation

1. Identify the minus side of the balance of payments<br /> The minus side records outflows of money from the U.S. to other countries.<br /><br />2. Analyze each option<br /> - Merchandise export sales: Inflow, recorded on the plus side.<br /> - Transportation: Depends on context; if it's payment for foreign services, it's an outflow.<br /> - Return on capital invested abroad: Inflow, recorded on the plus side.<br /> - Money spent by foreign tourists: Inflow, recorded on the plus side.<br /> - Money spent on foreign economic aid: Outflow, recorded on the minus side.
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