Suppose an American family from New York City eats in a restaurant in Mexico City. How Jwill this transaction be recorded in U.S. international transactions?

Question

Quizplus · Accepted Answer

The transaction is recorded in the current account as a negative item because it represents an import of services (the restaurant meal) from Mexico to the U.S., resulting in an outflow of money from the U.S.

Suppose an American Family from New York City Eats in a Restaurant