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.Which one of the following would NOT be one of the net impacts of this sale in 1991?
A) a $150 million reduction in the U.S.trade deficit
B) a $150 million reduction in the U.S.capital account surplus
C) a $150 million increase in the U.S.trade deficit
D) zero change in the U.S.balance of payments in 1991
Correct Answer:
Verified
Q15: In a freely-floating exchange rate system,the sale
Q16: The sale of US treasury bonds by
Q17: As the real value of the dollar
Q18: Which one of the following would NOT
Q19: Tourism shows up on the _ account.
A)merchandise
B)current
C)capital
D)official
Q20: What theory holds that a country's trade
Q22: The most likely way to reduce the
Q23: In order to reduce its current-account deficit,the
Q24: A nation that is running a savings
Q25: If a nation's income exceeds its spending,then
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents