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If a USFirm Buys Tulips from a Dutch Firm and the Dutch

Question 4

Multiple Choice

If a U.S.firm buys tulips from a Dutch firm and the Dutch firm uses the dollars it gets to buy U.S.stocks,the U.S.trade balance ________ and the U.S.capital and financial account ________.


A) rises; rises
B) rises; falls
C) falls; falls
D) falls; rises

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