Solved

Suppose Lufthansa Buys 10 Boeing 747s for $150 Million in 1991,financed

Question 32

Multiple Choice

Suppose Lufthansa buys 10 Boeing 747s for $150 million in 1991,financed by a five year loan from the US Export Import Bank.There is a one-year grace period on principal and interest payments.The net impact of this sale in 1991 is


A) a $150 million reduction in the U.S. trade deficit.
B) a $150 million reduction in the U.S. capital account surplus.
C) zero change in the U.S. balance of payments in 1991.
D) all of the above.

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions

Unlock this Answer For Free Now!

View this answer and more for free by performing one of the following actions

qr-code

Scan the QR code to install the App and get 2 free unlocks

upload documents

Unlock quizzes for free by uploading documents