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Suppose an Australian Citizen Buys Five Kegs of Bitburger Beer

Question 157

Essay

Suppose an Australian citizen buys five kegs of Bitburger beer from Germany.Explain what happens to the German balance of payments in each of the following scenarios:
a.Bitburger decides to keep the Australian dollars.
b.Bitburger uses the proceeds to buy an abandoned factory in America to expand its operations overseas.
c.Bitburger uses the proceeds to send relief aid to an impoverished area of Latin America.

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a.In this case,Germany's current account...

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