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US-Based John Deere Sells Machinery to Residents of South Africa

Question 144

Multiple Choice

U.S.-based John Deere sells machinery to residents of South Africa who pay with South African currency (the rand) .


A) This increases U.S.net capital outflow because the U.S.acquires foreign assets.
B) This decreases U.S.net capital outflow because the U.S.acquires foreign assets.
C) This increases U.S.net capital outflow because the U.S.sells capital goods.
D) This decreases U.S.net capital outflow because the U.S.sells capital goods.

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