A Russian Flour Mill Buys Wheat from Canada and Pays

Multiple Choice

A Russian flour mill buys wheat from Canada and pays for it with rubles. Which of the following correctly identifies the effects of this transaction?

A) Russian net exports increase, and Canadian net capital outflow increases.
B) Russian net exports increase, and Canadian net capital outflow decreases.
C) Russian net exports decrease, and Canadian net capital outflow increases.
D) Russian net exports decrease, and Canadian net capital outflow decreases.