If a UScompany Buys an Electrical Generator Made in Japan by a by a Japanese

question 56

Multiple Choice

If a U.S.company buys an electrical generator made in Japan by a Japanese firm,and the Japanese firm uses the payment to buy stocks issued by a U.S.company then

• A)U.S.exports and U.S imports increase.
• B)U.S.exports but not U.S.imports increase.
• C)U.S.imports but not U.S.exports increase.
• D)neither U.S.exports nor U.S.imports increase.

---

Definitions:

Income Statement

A financial statement that reports a company's financial performance over a specific accounting period, detailing revenues, expenses, and net profit or loss.