Multiple Choice
A Japanese firm buys lumber from Canada and pays for it with yen. Which of the following correctly identifies the effects of this transaction?
A) Japanese net exports increase, and Canadian net capital outflow increases.
B) Japanese net exports increase, and Canadian net capital outflow decreases.
C) Japanese net exports decrease, and Canadian net capital outflow increases.
D) Japanese net exports decrease, and Canadian net capital outflow decreases.
Correct Answer:
Verified
Correct Answer:
Verified
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