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A US Firm Buys Apples from New Zealand with New Zealand

Question 414

Multiple Choice

A U.S. firm buys apples from New Zealand with New Zealand dollars it got in exchange for U.S. dollars. New Zealand residents then use these dollars to purchase oranges from the U.S. Which of the following increases?


A) New Zeland's net capital outflow and New Zeland's net exports
B) only New Zeland's net exports
C) only New Zeland's net capital outflow
D) neither New Zeland's net exports nor New Zeland's capital outflow

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