US international transactions are recorded in the balance of payments
a Identify if each of the following transactions would be recorded as an increase or decrease in the balance of payments current or financial account for the United States
a(i) A wealthy entrepreneur purchases a new car directly from British Motor Works
a(ii) A US manufacturer purchases recording equipment from Germany
b How would an increase in US price level impact the current account? Explain
c How would the change in the current account identified in part (b) impact the international value of the dollar? Explain
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