3. Boeings big-ticket exports (beginner). Cathay Pacific, the Hong Kongbased airline, purchases five Boeing Dreamliners for $750

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3. Boeing’s big-ticket exports (beginner). Cathay Pacific, the Hong Kong–based airline, purchases five Boeing Dreamliners for $750 million. The U.S. Export-Import Bank provides a seven-year loan for the full amount of the purchase with no interest or principal payments due in the first year. Explain how the transaction would be recorded by the U.S. balance of payments.

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