Suppose that a U.S. firm buys 10 Volkswagen cars for $20,000 each, and the German company uses
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Suppose that a U.S. firm buys 10 Volkswagen cars for $20,000 each, and the German company uses the money to buy a $200,000 U.S. Treasury bond at a Treasury auction. How are these two transactions recorded in the balance-of-payments accounts for the United States?
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Related Book For
Money, Banking, and the Financial System
ISBN: 978-0134524061
3rd edition
Authors: R. Glenn Hubbard, Anthony Patrick O'Brien
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