Suppose That More British Decide to Vacation in the U

question 118

Multiple Choice

Suppose that more British decide to vacation in the U.S.and that the British purchase more U.S.Treasury bonds.Ignoring how payments are made for these purchases,

• A)the first action by itself raises U.S.net exports,the second action by itself raises U.S.net capital outflow.
• B)the first action by itself raises U.S.net exports,the second action by itself lowers U.S.net capital outflow.
• C)the first action by itself lowers U.S.net exports,the second action by itself raises U.S.net capital outflow.
• D)the first action by itself lowers U.S.net exports,the second action by itself lowers U.S.net capital outflow.