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A Guatemalan Company Exchanges Quetzal (Guatemalan Currency)for Dollars and Then

Question 139

Multiple Choice

A Guatemalan company exchanges quetzal (Guatemalan currency) for dollars and then uses the dollars to purchase construction equipment from a U.S.company.These transactions


A) increase Guatemalan net capital outflow,and increases U.S.net exports.
B) increase Guatemalan capital outflow,and decreases U.S.net exports.
C) decrease Guatemalan net capital outflow,and increases U.S.net exports.
D) decrease Guatemalan net capital outflow,and decreases U.S.net exports.

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