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Suppose Canada Sells Chocolate to the United States

Question 78

Multiple Choice

Suppose Canada sells chocolate to the United States. Which of the following correctly identifies the effects of this transaction?


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

Correct Answer:

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