An American restaurant buys $25,000 worth of beef from Uruguayan cattle owners, and the firm pays by depositing $25,000 into the Uruguayan firms' New York bank account. Fiat, an Italian auto producer, buys a 15% share worth $1 billion of the American auto producer Chrysler. They pay for this by selling-off $1 billion worth of US treasuries to an American private investment firm.

An American restaurant buys $25,000 worth of beef from Uruguayan cattle owners, and the firm pays by depositing $25,000 into the Uruguayan firms' New York bank account. Fiat, an Italian auto producer, buys a 15% share worth $1 billion of the American auto producer Chrysler. They pay for this by selling-off $1 billion worth of US treasuries to an American private investment firm.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

how will these scenarios impact the US balance of payments in regards to (CA AND FA accounts)?

An American restaurant buys $25,000 worth of beef from Uruguayan
cattle owners, and the firm pays by depositing $25,000 into the
Uruguayan firms' New York bank account.
Fiat, an Italian auto producer, buys a 15% share worth $1 billion of the
American auto producer Chrysler. They pay for this by selling-off $1
billion worth of US treasuries to an American private investment firm.

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