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AP® Macroeconomics

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Moderate

Wire Transfers and Balance of Trade

APMACR-YGUK6T

Suppose a U.S. citizen wires money back to her grandmother in Italy.

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

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 recorded since it does not involve the purchase of any good or service Capital or Current.