If a US Firm Buys Chinese Toys Using Previously Obtained Chinese Currency

question 11

True/False

If a U.S. firm buys Chinese toys using previously obtained Chinese currency, then both U.S. net exports and U.S. net capital outflow decrease.

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Definitions:

First-generation

Refers to the first set of individuals or products in a new lineage or series, particularly in the context of immigrants or technology.

Chlorinated Hydrocarbons

Chemical compounds containing chlorine, carbon, and hydrogen, often used as pesticides, solvents, and industrial chemicals, but can be persistent environmental pollutants.

DDT

A synthetic organic compound used as an insecticide, known for its environmental impacts, including the accumulation in the food chain.

Pyrethrum

A natural insecticide made from the dried flower heads of certain chrysanthemum species.