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A Canadian investor makes $10,000 in the form of a dividend payment from an American firm (think of a dividend as a type of income received from the ownership of a type of factor, e.g. capital). This money is deposited in a New York bank account. A U.S. hedge fund buys $1 million worth of German government bonds and pays for it by selling $1 million worth of French government stocks.

A Canadian investor makes $10,000 in the form of a dividend payment from an American firm (think of a dividend as a type of income received from the ownership of a type of factor, e.g. capital). This money is deposited in a New York bank account. A U.S. hedge fund buys $1 million worth of German government bonds and pays for it by selling $1 million worth of French government stocks.

ENGR.ECONOMIC ANALYSIS
ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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how will these scenarios impact the US balance of payments in regards to (CA AND FA accounts)? 

. A Canadian investor makes $10,000 in the form of a dividend payment from an American firm (think of a dividend as a type of income received from the ownership of a type of factor, e.g. capital). This money is deposited in a New York bank account. .A U.S. hedge fund buys $1 million worth of German government bonds and pays for it by selling $1 million worth of French government stocks.
Transcribed Image Text:. A Canadian investor makes $10,000 in the form of a dividend payment from an American firm (think of a dividend as a type of income received from the ownership of a type of factor, e.g. capital). This money is deposited in a New York bank account. .A U.S. hedge fund buys $1 million worth of German government bonds and pays for it by selling $1 million worth of French government stocks.
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