An American tourist visiting Germany and spending money there (for lodging, food, etc.) will reduce the U.S. current account deficit and reduce Germany's current account balance.

Question

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When an American tourist spends money in Germany, it increases the U.S. current account deficit and increases Germany's current account balance, as it is considered an import for the U.S. and an export for Germany.

An American Tourist Visiting Germany and Spending Money There (For