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AP® Macroeconomics

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Moderate

Trade Bookkeeping

APMACR-YJGF64

If a citizen of the U.S. purchases \$100 worth of bicycle parts to fix his bike from Germany and a German citizen purchased \$80 worth of wine from the United States to throw a party and those were the only transactions between the two countries for the year, then

A

the U.S. Capital Account would be negative.

B

the German Capital Account would be negative.

C

the U.S. Current Account would be in deficit.

D

the German Current Account would be in deficit.

E

both Countries would have negative balances of trade.