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A US Firm Buys Cement Mixers from China and Pays for for Them

Question 205

Multiple Choice

A U.S. firm buys cement mixers from China and pays for them with U.S. dollars.


A) The purchase of the cement mixers increases U.S. net exports and the payment with dollars increases U.S. net capital outflow.
B) The purchase of cement mixers increases U.S. net exports and the payment with dollars decreases U.S. net capital outflow.
C) The purchase of cement mixers decreases U.S. net exports and the payment with dollars increases U.S. net capital outflow.
D) The purchase of cement mixers decreases U.S. net exports and the payment with dollars decreases U.S. net capital outflow.

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