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When a USFirm Sells a Good Abroad For,say,100 Euros (Assume $1=1euro),U

Question 36

Multiple Choice

When a U.S.firm sells a good abroad for,say,100 euros (assume $1=1euro) ,U.S.net exports increase by $100.These $100 in exports can be accounted for as $100 increase in capital outflow because ________.


A) if the 100 euros are kept in the foreign bank,the U.S.firm is giving a loan to that bank
B) if the U.S.firm uses the 100 euros to buy a share of stock in a foreign firm,the firm is supplying U.S.capital to that foreign firm
C) if the U.S.firm uses the proceeds to build a new factory in that country,it is supplying U.S.capital to that country
D) all of the above
E) none of the above

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