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Suppose Katie, a Romanian Citizen, Builds a Toy Factory in Australia

Question 149

Multiple Choice

Suppose Katie, a Romanian citizen, builds a toy factory in Australia. What are the effects of these expenditures?


A) They increase Romanian and Australian net capital outflow.
B) They increase Romanian net capital outflow, but decrease Australian net capital outflow.
C) They decrease Romanian net capital outflow, but increase Australian net capital outflow.
D) They increase Romanian net capital outflow, but Australian net capital outflow remains unchanged.

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