6. The double-entry principle in the balance-of-payments How will the following transactions affect the U.S. balance-of-payments? For each transaction in the following table, indicate in which U.S. account it appears as a credit and in which account it appears as a debit. Transaction Account with Credit Account with Debit Miguel, a U.S. resident, buys an HDTV set for $2,500 and sends it to Mexico as a gift to his parents. Bill, a U.S. resident, pays $5,000 from his checking account held in the United States to buy shares of stock issued by a German company. The United States forgives $100 million of debt owed by the government of Mexico.
6. The double-entry principle in the balance-of-payments How will the following transactions affect the U.S. balance-of-payments? For each transaction in the following table, indicate in which U.S. account it appears as a credit and in which account it appears as a debit. Transaction Account with Credit Account with Debit Miguel, a U.S. resident, buys an HDTV set for $2,500 and sends it to Mexico as a gift to his parents. Bill, a U.S. resident, pays $5,000 from his checking account held in the United States to buy shares of stock issued by a German company. The United States forgives $100 million of debt owed by the government of Mexico.
Brief Principles of Macroeconomics (MindTap Course List)
8th Edition
ISBN:9781337091985
Author:N. Gregory Mankiw
Publisher:N. Gregory Mankiw
Chapter13: Open-economy Macroeconomics: Basic Concepts
Section: Chapter Questions
Problem 6PA
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Transcribed Image Text:6. The double-entry principle in the balance-of-payments
How will the following transactions affect the U.S. balance-of-payments?
For each transaction in the following table, indicate in which U.S. account it appears as a credit and in which account it appears as a debit.
Transaction
Account with Credit
Account with Debit
Miguel, a U.S. resident, buys an HDTV set for $2,500 and sends it to Mexico as a gift to
his parents.
Bill, a U.S. resident, pays $5,000 from his checking account held in the United States to
buy shares of stock issued by a German company.
The United States forgives $100 million of debt owed by the government of Mexico.
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