How does transaction affect the u.ss balance of payment

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Question: In class, we have discussed the balance of payments, which records the demand and supply of a country's currency. (a) Suppose a U.S. imports USD 50 million worth of goods from Canada. In exchange, the Canadian supplier receives a payment of USD 50 million, which they invest in U.S. treasury notes. How does this transaction affect the U.S.'s balance of payment?

Reference no: EM133706696

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