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Hungary Buys Railroad Engines from a Canadian Firm and Pays

Question 46

Multiple Choice

Hungary buys railroad engines from a Canadian firm and pays for them with forints (Hungarian currency) . What happens to Canadian net exports and net foreign investment due to this transaction?


A) It increases both Canadian net exports and Canadian net foreign investment.
B) It decreases both Canadian net exports and Canadian net foreign investment.
C) It increases Canadian net exports and decreases Canadian net foreign investment.
D) It decreases Canadian net exports and increases Canadian net foreign investment.

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