An American consumer buys a French luxury product in New York. In the U.S. balance of payments accounts, this transaction directly appears in

Question

Quizplus · Accepted Answer

When an American consumer purchases a French luxury product in New York, it is recorded as an import in the U.S. balance of payments. This is because the product is produced outside the U.S. and brought into the country, reflecting a purchase that contributes to the imports part of the current account.

An American Consumer Buys a French Luxury Product in New