Multiple Choice
A Canadian firm buys apples from New Zealand with Canadian currency. The Canadian firm then uses this money to buy packaging equipment from a Canadian firm. How do these transactions affect net exports or net capital outflow?
A) They increase New Zealand net capital outflow and New Zealand net exports.
B) They increase New Zealand net exports but not New Zealand net capital outflow.
C) They increase New Zealand net capital outflow but not New Zealand net exports.
D) They increase neither New Zealand net exports nor New Zealand capital outflow.
Correct Answer:
Verified
Correct Answer:
Verified
Q26: What are foreign-produced goods and services that
Q27: A citizen of Saudi Arabia uses previously
Q28: A Russian flour mill buys wheat from
Q30: John, a Canadian citizen, opens up a
Q31: If the Canadian real exchange rate appreciates,
Q34: Sonya, a citizen of Denmark, sells Danish
Q35: What does purchasing-power parity imply about the
Q36: Which of the following would be a
Q37: Which of the following is an example
Q166: According to purchasing-power parity,if prices in Canada