When Fabiola from the United States flies to Scotland on a Canadian airline,stays in an Edinburgh hotel,and buys many wool sweaters from Scotland to bring home,she is

Question

Quizplus · Accepted Answer

Fabiola's actions contribute to the negative balance of payments because she is buying goods from Scotland, which means money is leaving the US and going to Scotland. This results in a trade deficit and a negative balance of payments.

When Fabiola from the United States Flies to Scotland on a Canadian