Question

In the 1990s and the first two decades of the 2000s, investors from the Asian economies of Japan and China made significant direct and portfolio investments in the United States. At the time, many Americans were unhappy that this investment was occurring.
True or False: It was better for the United States not to receive this foreign investment because it shrank the capital stock.

True

False

True or False: It's best for Americans that China and Japan, rather than Americans themselves, made the investment because Americans could receive the returns on the investment made by China and Japan.

Answer 1

In the 1990s and the first two decades of the 2000s, investors from the Asian economies of Japan and China made significant direct and portfolio investments in the United States. At the time, many Americans were unhappy that this investment was occurring.It was better for the United States not to receive this foreign investment because it shrank the capital stock: False

It will be better for the United State to receive this foreign investment than not to receive it because it will made the capital stock larger and this will benefit the government because there will be a return on the investment itself.

It's best for Americans that China and Japan, rather than Americans themselves, made the investment because Americans could receive the returns on the investment made by China and Japan.True

It is best for Americans to have made this investment because then they would have received the return on the investment themselves.