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

Question 21

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.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

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