Multiple Choice
Suppose that more Chinese decide to vacation in the U.S.and that the Chinese purchase more U.S.Treasury bonds.Ignoring how payments are made for these purchases,
A) the first action by itself raises U.S.net exports, the second action by itself raises U.S.net capital outflow.
B) the first action by itself raises U.S.net exports, the second action by itself lowers U.S.net capital outflow.
C) the first action by itself lowers U.S.net exports, the second action by itself raises U.S.net capital outflow.
D) the first action by itself lowers U.S.net exports, the second action by itself lowers U.S.net capital outflow.
Correct Answer:

Verified
Correct Answer:
Verified
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