Multiple Choice
Bolivia buys railroad engines from a U.S. firm and pays for them with Bolivianos (Bolivian currency) . By itself, this exchange
A) increases both U.S. net exports and U.S. net capital outflow.
B) decreases both U.S. net exports and U.S. net capital outflow.
C) increases U.S. net exports and does not affect U.S. net capital outflow.
D) None of the above is correct.
Correct Answer:
Verified
Correct Answer:
Verified
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