Suppose a Resident of the USA Buys a Jaguar Car

Multiple Choice

Suppose a resident of the USA buys a Jaguar car from the UK, and the UK exporter uses the receipts to buy shares in Boeing. Which of the following statements is true from the perspective of the UK?

A) Net exports fall, and net capital outflow rises.
B) Net exports rise, and net capital outflow rises.
C) none of these answers
D) Net exports rise, and net capital outflow falls.
E) Net exports fall, and net capital outflow falls.