Multiple Choice
A Canadian firm buys apples from New Zealand with Canadian currency. The New Zealand firm then uses this money to buy packaging equipment from a Canadian firm. How do these transactions affect net exports or net capital outflow?
A) They increase New Zealand net capital outflow and New Zealand net exports.
B) They increase New Zealand net exports but not New Zealand net capital outflow.
C) They increase New Zealand net capital outflow but not New Zealand net exports.
D) They increase neither New Zealand net exports nor New Zealand capital outflow.
Correct Answer:
Verified
Correct Answer:
Verified
Q159: What concept implies that the real interest
Q160: If a Canadian manufacturer of linens purchases
Q161: Suppose that a country exports $200 million
Q162: Suppose the price level in Canada (P)
Q163: What does purchasing-power parity imply about the
Q165: When Canada imports more than it exports,
Q166: Which of the following is an example
Q167: Assuming all other things equal, what would
Q168: If a Swiss chocolate maker opens a
Q169: In every economy, national saving equals domestic