Multiple Choice
A Canadian computer maker sells computers to a German firm. This company uses all of the revenues from this sale to purchase automobiles from German firms. Which of the following best describes the effects of these transactions?
A) They will increase both Canadian net exports and Canadian net foreign investment.
B) They will decrease both Canadian net exports and Canadian net foreign investment.
C) They will increase Canadian net exports and will not affect Canadian net foreign investment.
D) They will not affect Canadian net exports or Canadian net foreign investment.
Correct Answer:
Verified
Correct Answer:
Verified
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