A Norwegian Firm Purchases Earth-Moving Equipment from a Canadian Company

question 157

Multiple Choice

A Norwegian firm purchases earth-moving equipment from a Canadian company and pays for it with domestic currency. What are the effects of this transaction?

• A) It increases Canadian net exports and increases Norwegian net capital outflow.
• B) It increases Canadian net exports and decreases Norwegian net capital outflow.
• C) It decreases Canadian net exports and increases Norwegian net capital outflow.
• D) It decreases Canadian net exports and decreases Norwegian net capital outflow.

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Definitions:

Objects

Physical items or entities that can be perceived by the senses and have a defined shape or form.

Lightning

A natural electrical discharge of very short duration and high voltage that occurs between a cloud and the ground or within a cloud.

Remote Past

A period referring to the distant historical past, signifying times or events significantly far back from the current period.

Systematic Desensitization

A therapeutic technique used to reduce phobia or anxiety through gradual exposure to the feared object or situation combined with relaxation exercises.