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Gabrielle, an Italian Citizen, Uses Some Previously Obtained Dollars to Purchase

Question 127

Multiple Choice

Gabrielle, an Italian citizen, uses some previously obtained dollars to purchase a bond issued by a U.S. company. This transaction


A) decreases U.S.net capital outflow.
B) does not change U.S.net capital outflow.
C) increases U.S.net capital outflow by more than the value of the bond.
D) increases U.S.net capital outflow by the value of the bond.

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