Multiple Choice
An American pharmacy buys drugs from a Canadian company and pays for them with American dollars. What are the effects of this transaction?
A) It increases American net exports and increases Canadian capital outflow.
B) It increases American net exports and decreases Canadian capital outflow.
C) It decreases American net exports and increases Canadian capital outflow.
D) It decreases American net exports and decreases Canadian capital outflow.
Correct Answer:
Verified
Correct Answer:
Verified
Q13: If a country sells more goods and
Q39: In 2009, approximately what was Canadian net
Q41: Assume the exchange rate is about 292
Q42: On behalf of your firm, you make
Q43: In which situation must national saving rise?<br>A)
Q45: According to purchasing-power parity, if prices in
Q46: Hungary buys railroad engines from a Canadian
Q47: Suppose the nominal exchange rate is 95
Q49: What type of economy does Canada have?<br>A)
Q159: How do we find the real exchange