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Suppose a Resident of the USA Buys a Jaguar Car

Question 53

Multiple Choice

Suppose a resident of the USA buys a Jaguar car from SA, and the SA exporter uses the receipts to buy shares in Boeing.Which of the following statements is true from the perspective of SA?


A) Net exports fall, and net capital outflow rises.
B) Net exports rise, and net capital outflow rises.
C) None of these answers.
D) Net exports rise, and net capital outflow falls.
E) Net exports fall, and net capital outflow falls.

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