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If Domestic Residents of France Purchase 1

Question 50

Multiple Choice

If domestic residents of France purchase 1.2 trillion euros of foreign assets and foreigners purchase 1.5 trillion euros of French assets,then France's net capital outflow is


A) -.3 trillion euros,so it must have a trade deficit.
B) -.3 trillion euros,so it must have a trade surplus.
C) .3 trillion euros,so it must have a trade deficit.
D) .3 trillion euros,so it must have a trade surplus.

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