Bolivia Buys Railroad Engines from a Canadian Firm and Pays

Multiple Choice

Bolivia buys railroad engines from a Canadian firm and pays for them with Bolivianos (Bolivian currency) . Which of the following best describes the effects of this transaction?

A) It increases both Canadian net exports and Canadian net foreign investment.
B) It decreases both Canadian net exports and Canadian net foreign investment.
C) It increases Canadian net exports and does not affect Canadian net foreign investment.
D) It decreases Canadian net exports and net foreign investment.