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An American Brewery Sells Dollars to Obtain Euros

Question 167

Multiple Choice

An American brewery sells dollars to obtain euros. It then uses the euros to buy brewing equipment from a German company. These transactions


A) increase U.S.net capital outflow because Germans obtain U.S.assets.
B) decrease U.S.net capital outflow because Germans obtain U.S.assets.
C) increase U.S.net capital outflow because the U.S.buys capital goods.
D) decrease U.S.net capital outflow because the U.S.buys capital goods.

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