When a US Oil Company Purchases Oil from Saudi Arabia and the and the Saudi

Multiple Choice

When a U.S. oil company purchases oil from Saudi Arabia and the Saudi Arabian firm uses the proceeds from its sale of oil to the U.S. to buy transportation services from the U.S., U.S. net exports ______ and the capital inflow to the United States ______.

A) is positive; is negative
B) is negative; is positive
C) is negative; is negative
D) equals zero; equals zero