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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Money Banking And The Financial System

ISBN: 1801

3rd Edition

Authors: R. Glenn Hubbard, Anthony Patrick O'Brien

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