Question
A foreigner purchases $50,000worth of bonds issues by AT&T from a broker and pays for the bonds with his bank account at Chase Bank,This transaction
A foreigner purchases $50,000worth of bonds issues by AT&T from a broker and pays for the bonds with his bank account at Chase Bank,This transaction will affect both the current account and the financial account for the U.S.
According to the Balance of Payments identity (please assume no capital account), if a country has a deficit in the current account,it's a net lender and it must have a financial account surplus.
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A Course In Environmental Economics
Authors: Daniel J Phaneuf, Till Requate
1st Edition
1316866815, 9781316866818
