Find the net effect of transactions on us balance of payment


Indicate how each of the following international transactions is entered into the U.S. balance of payments with double-entry bookkeeping:

(a)The U.S. government gives a $100 cash balance in a U.S. bank to a developing nation as part of the U.S. foreign aid program.

(b)The developing nation uses the $100 bank balance to import $100 worth of food from the United States.

(c)What is the net effect of transactions (a) and (b) on the U.S. balance of payments if they occur during the same year?

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Microeconomics: Find the net effect of transactions on us balance of payment
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