A company in Panama pays for a U.S.architect to design a factory building.By itself this transaction
A)increases U.S.exports and so increases the U.S.trade balance.
B)increases U.S.exports and so decreases the U.S.trade balance.
C)increases U.S.imports and so increases the U.S.trade balance.
D)increases U.S.imports and so decreases the U.S.trade balance.

Question

Quizplus · Accepted Answer

The transaction increases U.S. exports of services, which increases the U.S. trade balance.

A Company in Panama Pays for a U