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AP® Macroeconomics

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Japanese Robotics and Balance of Trade

APMACR-ULTEG6

Suppose a U.S. motorcycle company purchased a Japanese robot for its factory in Wisconsin.

That transaction would be classified in the U.S. Balance of Trade as a

A

debit to the Current Account.

B

credit to the Current Account.

C

debit to the Capital Account.

D

credit to the Capital Account.

E

not be counted because it is not a country the U.S. does business with.