Suppose Lufthansa Buys 10 Boeing 747s for $150 Million in 1991,financed

question 14

Multiple Choice

Suppose Lufthansa buys 10 Boeing 747s for $150 million in 1991,financed by a five-year loan from the US Export-Import Bank.There is a one year grace period on principal and interest payments.Which one of the following would NOT be one of the net impacts of this sale in 1991?

• A)a $150 million reduction in the U.S.trade deficit
• B)a $150 million reduction in the U.S.capital account surplus
• C)a $150 million increase in the U.S.trade deficit
• D)zero change in the U.S.balance of payments in 1991