Consider two fictional economies

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Consider two fictional economies, one called the domestic country and the other called the foreign country. Given the transactions listed below, construct a balance of payments account for each county. Include a statistical discrepancy.

The domestic country purchased $100 in oil from the foreign country.

Foreign tourists spent $25 on domestic ski slopes

Foreign investors were paid $15 in dividends from their holdings of domestic equities.

Domestic residents gave $25 to foreign charities.

Domestic businesses borrowed $65 from foreign banks.

Foreign investors purchased $15 of domestic government bonds.

Domestic investors sold $50 of their holdings of foreign government bonds.

Reference no: EM131112320

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