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A Portuguese Company Exchanges Euros for $60,000 from a U

Question 38

Multiple Choice

A Portuguese company exchanges euros for $60,000 from a U.S.bank.The Portuguese firm then uses the dollars to purchase $60,000 of canning equipment from a U.S.company.As a result of these two transactions alone


A) both U.S.net capital outflow and U.S.net exports rise.
B) U.S.net capital outflow rose and U.S.net exports fall.
C) U.S.net capital outflow fell and U.S.net exports rise.
D) both U.S.net capital and U.S.net exports fall.

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