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The Trickle-Down Company of Fresno, California imports $800,000 worth of beef from Mexico. They pay their supplier in Mexico for the import as follows: Half
The Trickle-Down Company of Fresno, California imports $800,000 worth of beef from Mexico. They pay their supplier in Mexico for the import as follows: Half in U.S. dollars, and half in Pesos (the currency of Mexico). What accounts will be credited/debited in the U.S. Balance of Payments? (Note: Dr = debit; Cr= credit). Dr. Merchandise imports. Cr. Claims on foreigners (decrease). Cr. Liabilities to foreigners (increase). Dr. Claims on foreigners (increase). Dr. Liabilities to foreigners (decrease). Cr. Merchandise import. Dr. Liabilities to Foreigners (decrease). Cr. Merchandise imports. Cr. Claims on foreigners (decrease). Dr. Liabilities to foreigners. Cr. Claims on foreigners (decrease). Dr. Merchandise imports. Cr. Unilateral transfers
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