In 2018, the Spanish bank Santander grants a mortgage to a Spanish household. The household uses part of the money to buy a holiday yacht from a producer in Germany who has a bank account with Commerzbank. Santander issues a covered bond which is bought by Commerzbank. Santander uses part of the revenues from the bond to invest in the Turkish stock market. The balance sheets show the transactions. Commerzbank Producer DE Assets liabilities assets liabilities Household ES Santander Assets liabilities assets liabilities A +Deposit_ES +Mortgage +Mortgage +Deposit_ES (400) (400) (400) (400) B +Good (50) -Reserves -Deposit_ES -Deposit_ES (50) (50) (50) +Reserves (50) + Deposit_DE (50) -Good (50) + Deposit_DE (50) + covered bond (300) + covered bond (50) -Reserves (50) +Reserves (300) -Reserves (250) +Turkish stocks (250) a) Which changes in the Spanish Balance of Payments occur in lines A, B and C and D above? Put the correct entries connected to the money inflows and outflows in the table in the answer form. Choose from the following: import, export, factor income paid/received, interest paid/received, central bank reserves sale/purchase, debt sale/purchase, dividends paid/received, equity sale/purchase. Add a sign (plus or minus) to each entry. b) How did macroeconomic measures change in each of the steps? Complete the table. c) There is both lending and borrowing in these transactions. On net, is Spain an international borrower or an international lender due to these transactions? Refer to specific balance sheet items to motivate your answer. (50 words, In 2018, the Spanish bank Santander grants a mortgage to a Spanish household. The household uses part of the money to buy a holiday yacht from a producer in Germany who has a bank account with Commerzbank. Santander issues a covered bond which is bought by Commerzbank. Santander uses part of the revenues from the bond to invest in the Turkish stock market. The balance sheets show the transactions. Commerzbank Producer DE Assets liabilities assets liabilities Household ES Santander Assets liabilities assets liabilities A +Deposit_ES +Mortgage +Mortgage +Deposit_ES (400) (400) (400) (400) B +Good (50) -Reserves -Deposit_ES -Deposit_ES (50) (50) (50) +Reserves (50) + Deposit_DE (50) -Good (50) + Deposit_DE (50) + covered bond (300) + covered bond (50) -Reserves (50) +Reserves (300) -Reserves (250) +Turkish stocks (250) a) Which changes in the Spanish Balance of Payments occur in lines A, B and C and D above? Put the correct entries connected to the money inflows and outflows in the table in the answer form. Choose from the following: import, export, factor income paid/received, interest paid/received, central bank reserves sale/purchase, debt sale/purchase, dividends paid/received, equity sale/purchase. Add a sign (plus or minus) to each entry. b) How did macroeconomic measures change in each of the steps? Complete the table. c) There is both lending and borrowing in these transactions. On net, is Spain an international borrower or an international lender due to these transactions? Refer to specific balance sheet items to motivate your answer. (50 words