For each of the following transactions that may by themselves change the sum of the Canadian current account balance, CA. and the Canadia account balance, KA, give an example of an offsetting transaction that would leave CA + KA unchanged. a. The Canadian govemment sells military equipment to a foreign government. An example of an offsetting transaction is: OA. Kuwait pays for the services of a Canadian team of oil fire fighters, which is a positive entry in the current account. B. Canadian citizens buy cars from the foreign country, which is a negative entry in the current account. C. A foreign bank buys Canadian government bonds, which is a negative entry in the capital account. D. No transaction needed.

For each of the following transactions that may by themselves change the sum of the Canadian current account balance, CA. and the Canadia account balance, KA, give an example of an offsetting transaction that would leave CA + KA unchanged. a. The Canadian govemment sells military equipment to a foreign government. An example of an offsetting transaction is: OA. Kuwait pays for the services of a Canadian team of oil fire fighters, which is a positive entry in the current account. B. Canadian citizens buy cars from the foreign country, which is a negative entry in the current account. C. A foreign bank buys Canadian government bonds, which is a negative entry in the capital account. D. No transaction needed.

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 2PA

See similar textbooks

Similar questions

The GDP for the United States is 18,036 billion and its current account balance is 484 billion. What percent of GDP is the current account balance?
If foreign investors buy more U.S. stocks and bonds, how would that show up in the current account balance?
Suppose in an economy if the Trade balances are $80 Invisible balance are $20 find the Current account balance of payment!!!!
Q5_1. Find the invisible balance when the current account balance of payment are 1600 and the trade balance are 1350!?
What is Australia’s balance on goods? What is Australia’s balance on services What is Australia’s balance on goods and services? What is Australia’s current account balance?
Find the current account balance when the trade balance are 2,81,000 and the invisible balance are 3,91,000 in the circular flow of income?