Suppose Lufthansa buys 10 Boeing 747s for $150 million in 1991, financed by a five year loan from the US Export Import Bank. There is a one-year grace period on principal and interest payments. The net impact of this sale in 1991 is
A) a $150 million reduction in the U.S. trade deficit.
B) a $150 million reduction in the U.S. capital account surplus.
C) zero change in the U.S. balance of payments in 1991.
D) all of the above.
Answer: D
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Answer the following statement true (T) or false (F)
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Answer the following statement true (T) or false (F)