Multiple Choice
A Canadian firm buys boomerangs from Australia and pays for it with Canadian dollars. What are the effects of this transaction?
A) Canadian net exports increase, and Canadian net capital outflow increases.
B) Canadian net exports increase, and Canadian net capital outflow decreases.
C) Canadian net exports decrease, and Canadian net capital outflow increases.
D) Canadian net exports decrease, and Canadian net capital outflow decreases.
Correct Answer:
Verified
Correct Answer:
Verified
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