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AP® Macroeconomics

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Pension Money and Balance of Trade

APMACR-KZ4TXG

Jim is a retired U.S. postal worker living in Costa Rica. He receives a \$3000 monthly pension check and immediately converts it to Costa Rican money. If he buys \$100 worth of American Made clothes in his favorite Costa Rican specialty shop.

If no other transactions occurred that year, then in the U.S. Balance of Payments

A

the Current Account would have a deficit of $3000.

B

the Current Account would have a deficit of $2900.

C

the Current Account would have a deficit of \$3000 and the Capital Account would have a credit of \$100.

D

the Current Account would have a credit of $3000.

E

the Current Account would have a credit of $2900.