For each of the following transactions that may by themselves change the sum of the Canadian current account balance, CA. and the Canadia account balance, KA, give an example of an offsetting transaction that would leave CA + KA unchanged. a. The Canadian govemment sells military equipment to a foreign government. An example of an offsetting transaction is: OA. Kuwait pays for the services of a Canadian team of oil fire fighters, which is a positive entry in the current account. B. Canadian citizens buy cars from the foreign country, which is a negative entry in the current account. C. A foreign bank buys Canadian government bonds, which is a negative entry in the capital account. D. No transaction needed.

For each of the following transactions that may by themselves change the sum of the Canadian current account balance, CA. and the Canadia account balance, KA, give an example of an offsetting transaction that would leave CA + KA unchanged. a. The Canadian govemment sells military equipment to a foreign government. An example of an offsetting transaction is: OA. Kuwait pays for the services of a Canadian team of oil fire fighters, which is a positive entry in the current account. B. Canadian citizens buy cars from the foreign country, which is a negative entry in the current account. C. A foreign bank buys Canadian government bonds, which is a negative entry in the capital account. D. No transaction needed.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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