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If a UScompany Buys an Electrical Generator Made in Japan by a by a Japanese

Question 56

Multiple Choice

If a U.S.company buys an electrical generator made in Japan by a Japanese firm,and the Japanese firm uses the payment to buy stocks issued by a U.S.company then


A) U.S.exports and U.S imports increase.
B) U.S.exports but not U.S.imports increase.
C) U.S.imports but not U.S.exports increase.
D) neither U.S.exports nor U.S.imports increase.

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