Consider the purchase of a Japanese car by an Antiguan citizen. Say…

Consider the purchase of a Japanese car by an Antiguan citizen. Say… Consider the purchase of a Japanese car by an Antiguan citizen. Say that the yen/EC dollar exchange rate is 100 yen to a EC dollar and that the yen price of the car is 2.0 million yen, which is $20,000. The Antiguan citizen (probably an automobile dealer) takes $20,000, buys 2.0 million yen, and then buys the car. Explain what happens to Antigua’s imports and the capital account after this transaction and the net wealth position of the Antigua as it relates to the rest of the world. Business Economics Macroeconomics ECON MACROECONO

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