Suppose a Portuguese citizen travels to Tanzania to go on a safari and uses euros for the transaction. Tanzania then uses the euros to purchase wine from Portugal. How will this transaction affect Portugal's trade deficit? The first transaction is recorded as an export capital account an export deficit will increase in the . The second transaction is recorded as in the capital account , so the trade

Suppose a Portuguese citizen travels to Tanzania to go on a safari and uses euros for the transaction. Tanzania then uses the euros to purchase wine from Portugal. How will this transaction affect Portugal's trade deficit? The first transaction is recorded as an export capital account an export deficit will increase in the . The second transaction is recorded as in the capital account , so the trade

Brief Principles of Macroeconomics (MindTap Course List)

8th Edition

ISBN:9781337091985

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter13: Open-economy Macroeconomics: Basic Concepts

Section: Chapter Questions

Problem 9PA

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