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A USFirm Buys Apples from New Zealand with U

Question 79

Multiple Choice

A U.S.firm buys apples from New Zealand with U.S.currency.The New Zealand firm than uses this money to buy packaging equipment from a U.S.firm.Which of the following increases?


A) New Zealand net capital outflow and New Zealand net exports
B) only New Zealand net exports
C) only New Zealand net capital outflow
D) neither New Zealand net exports nor New Zealand capital outflow

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