Multiple Choice
A Venezuelan firm purchases earth-moving equipment from a Canadian company and pays for it with domestic currency. Which of the following correctly identifies the effects of this transaction?
A) It increases Canadian net exports and increases Venezuelan net capital outflow.
B) It increases Canadian net exports and decreases Venezuelan net capital outflow.
C) It decreases Canadian net exports and increases Venezuelan net capital outflow.
D) It decreases Canadian net exports and decreases Venezuelan net capital outflow.
Correct Answer:
Verified
Correct Answer:
Verified
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