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Boeing makes an airplane in the United States and sells it to Spain for 20 million Euros. Boeing then spends 10 million Euros in Italy
Boeing makes an airplane in the United States and sells it to Spain for 20 million Euros. Boeing then spends 10 million Euros in Italy for computer equipment and pays 10 million Euros in fees to a consulting company in France. What is the total effect on the U.S. balance of payments? A. The current account and the financial account are both unchanged B. The current account increases by 10 million, and the financial account decreases by 10 million C. The current account increases by 20 million. The financial account is unchanged D. The current account decreases by 10 million, and the financial account increases by 10 million
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