When a US Restaurant Purchases French Wine and the French Wine Company

question 74

Multiple Choice

When a U.S. restaurant purchases French wine and the French wine company uses the proceeds to buy U.S. government debt, U.S. ________ and there is a capital ________ the United States.

• A)imports increase; outflow from
• B)imports decrease; inflow to
• C)imports increase; inflow to
• D)exports increase; outflow from

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Definitions:

Pounds

A unit of weight in the Imperial system, equivalent to 0.453592 kilograms.

Compute

To calculate or process data using a computer or mathematical algorithms.

Weight

A measure of the heaviness of an object, typically defined by the force of gravity on it.

Current Account Deficit

A situation where a country's spending on foreign trade and investment exceeds its income from the export of goods and services.