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Boeing makes an airplane in the United States and sells it to Spain for 2 0 million Euros. Boeing then spends 1 0 million Euros
Boeing makes an airplane in the United States and sells it to Spain for million Euros. Boeing then spends million Euros in Italy for computer equipment and pays million Euros in fees to a consulting company in France. What is the total effect on the US balance of payments?
Multiple Choice
The current account and the financial accolit are both unchanged.
The current account increases by million, and the financial account decreases by million.
The current account increases by million. The financial account is unchanged.
The current account decreases by million, and the financial account increases by million.
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